Dow Jones Industrial Average (.DJI) futures indicate a 200-point opening drop as investors look to jobs numbers

Dow Jones Industrial Average (.DJI) futures indicate a 200-point opening drop as investors look to jobs numbers

Dow Jones Industrial Average (.DJI) futures indicate a 200-point opening drop as investors look to jobs numbers

Futures contracts tied to the major U.S. stock indexes pointed to a lower start to Friday’s session, leaving Wall Street on track for modest weekly losses.

Dow Jones Industrial Average futures fell 207 points, implying an opening loss of about 206 points. S&P 500 and Nasdaq futures also pointed to losses. Earlier on, futures had pointed to opening gains for the three indexes.

The early morning moves on Friday followed one of the week’s better days on Thursday as oil’s biggest one-day rally ever soothed investors who’d grown worried over financial and job losses in the energy sector.

Though West Texas crude futures at $25.32 per barrel is less than half the price the contracts traded at as recently as January, the one-day rally was enough to carry the major equity indexes higher.

The Dow rose 469.93 points, or 2.2%, on Thursday but remained on pace to finish the week down 1% as of the session’s close. Chevron led the blue-chip index higher, rallying 11% and singlehandedly added more than 50 points.

The S&P 500 also gained 2.2% to finish the day at 2,526.90 with energy sector components up over 9%.

Both the Dow and S&P 500 remain more than 25% below their respective all-time highs set in February as marketplace jitters over the spread of COVID-19 foster volatile trading on Wall Street.

There have been more than 245,000 confirmed infections in the United States and more than 6,000 deaths from COVID-19, according to data from Johns Hopkins University.

Nonfarm payrolls

Investors will be watching out for new data, with nonfarm payrolls due at 8:30 a.m. ET and Markit services PMIs expected at 9:45 a.m. ET.

Numbers released earlier this week showed that more than 6.65 million people in the U.S. filed for unemployment benefits last week.

There are no earnings reports scheduled for Friday.

Technical Indicators

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 25,500.92.

The projected upper bound is: 24,183.98.

The projected lower bound is: 18,331.98.

The projected closing price is: 21,257.98.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 22 white candles and 28 black candles for a net of 6 black candles.

An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend (which appears to be the case with DJ INDU AVERG). It then signifies that the momentum may be shifting from the bears to the bulls.

If the engulfing bullish pattern occurs during an uptrend, it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 39.4876. This is not an overbought or oversold reading. The last signal was a sell 2 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 43.84. 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 7 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 30. This is not a topping or bottoming area. The last signal was a buy 7 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 5 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 469.930 at 21,413.439. Volume was 33% above average (neutral) and Bollinger Bands were 126% wider than normal.

Open     High      Low     Close     Volume___
20,819.46121,477.77020,735.02021,413.439 534,668,800
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 21,046.19 25,670.27 26,856.46
Volatility: 94 83 43
Volume: 675,379,264 522,095,008 324,692,800

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.

Summary

DJ INDU AVERG is currently 20.3% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of .DJI at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .DJI and have had this outlook for the last 28 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

Latest posts by HEFFX Australia (see all)