Dow Jones Industrial Average (.DJI) five-day win streak comes to end after report of first coronavirus case in U.S.
U.S. benchmark stock indexes finished lower on Tuesday, pulling back from records seen last week, after news that the Chinese coronavirus had spread to the U.S. raising fears of a pandemic that might affect global economic growth.
The Dow has risen for five of the past six weeks, with a year-to-date return of 2.3%. The S&P 500 has gained for two consecutive weeks, with a year-to-date return of 2.8% and the Nasdaq has risen for six straight weeks, with a year-to-date return of 4.4%.
Markets have largely dismissed impeachment talk because investors see a low likelihood that Trump will be removed from office following a Senate trial.
For his part, Trump touted the U.S. economy’s strength in a speech in Davos, Switzerland, kicking off an important gathering of business leaders at the World’s Economic Forum. “I’m proud to declare that the U.S. is in the midst of an economic boom the likes of which the world has never seen,” Trump said. “America’s economic turnaround has been nothing short of spectacular.”
He said trade talks with Brussels were going well even as he suggested import duties on European cars were still on the table if an agreement was not struck. He also confirmed France would delay until the end of 2020 a controversial tax on digital services that would impact U.S. tech giants after the Trump administration threatened retaliatory tariffs.
On Friday, U.S. stocks finished at records after December housing starts data that showed home construction rising 16.9%, to annual rate of 1.608 million units, to the fastest pace since 2006.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 28,205.73.
The projected upper bound is: 29,645.44.
The projected lower bound is: 28,814.77.
The projected closing price is: 29,230.11.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 32 white candles and 18 black candles for a net of 14 white candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 86.8659. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 4 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 66.28. This is not a topping or bottoming area. However, the RSI just crossed below 70 from a topping formation. This is a bearish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 0 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 113.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 11 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 7 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERG closed down -152.061 at 29,196.039. Volume was 27% above average (neutral) and Bollinger Bands were 11% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 28,982.82 28,273.77 26,923.29
Volatility: 9 9 14
Volume: 281,724,736 252,192,992 263,610,128
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
DJ INDU AVERG is currently 8.4% above its 200-period moving average and is in an upward trend. Volatility is Our volume indicators reflect moderate flows of volume into .DJI (mildly bullish). Our trend forecasting oscillators are currently bullish on .DJI and have had this outlook for the last 26 periods.
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