Dow Jones Industrial Average (.DJI) five higher-priced components are accounting for nearly half of the decline
Of the Dow Jones Industrial Average’s DJIA, -1.22%412-point plunge Tuesday, five higher-priced components are accounting for nearly half of the decline. The biggest drag on the Dow’s price is Boeing Co. BA, -1.87% as the stock fell $8.75, or 2.4%, to shave about 59 points off the Dow’s price. Among the other biggest drags, shares of Goldman Sachs Group Inc. GS, -2.40% shed $5.66, or 2.8%; Caterpillar Inc. CAT, -3.19% declined $4.86, or 3.6%; 3M Co. MMM, -1.84%dropped $4.60, or 2.4%; and Apple Inc. AAPL, +0.01% gave up $3.72, or 2.4%. Combined, the stocks’ price declines cut about 187 points off the Dow’s price. The Dow is a price-weighted average, meaning stocks with the highest prices have the most influence, while indexes like the S&P 500 SPX, -1.42% and the Nasdaq Composite COMP, -1.91% are market-capitalization weighted, meaning the most valuable companies carry the most weight.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 25,506.86.
The projected lower bound is: 23,252.88.
The projected closing price is: 24,379.87.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 9 white candles and 1 black candles for a net of 8 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 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 80.6777. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 11 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 56.35. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 17 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 103.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 5 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 13 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERG closed down -301.869 at 24,404.480. Volume was 5% below average (neutral) and Bollinger Bands were 37% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 24,132.79 24,306.28 24,968.30
Volatility: 13 30 20
Volume: 311,480,000 370,113,760 328,562,528
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 2.3% below its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. 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 6 periods.