Dow Jones Industrial Average (.DJI) futures point to a higher open

Dow Jones Industrial Average (.DJI) futures point to a higher open

Dow Jones Industrial Average (.DJI) futures point to a higher open

Stock futures indicated that the Dow Jones Industrial Average would open higher Monday, after jumping more than 100 points earlier. The futures movement comes in the wake of President Donald Trump’s decision to suspend planned tariffs against Mexico.

As of 9:54 p.m. ET Sunday, Dow Jones Industrial Average futures were up 70 points, implying the index could rise 82.06 points higher at Monday’s open. S&P 500 and Nasdaq futures also pointed to a higher open for the two indexes on Monday.

Trump announced on Friday that he would not impose 5% tariffs on Mexican exports, after Mexico agreed to strengthen immigration enforcement.

But Komal Sri Kumar, president of Sri-Kumar Global Strategies, thinks this boost will be short lived.

“There is still uncertainty around the treaty because the president can still impose tariffs if Mexico doesn’t comply with the deal,” Kumar said. “What does this mean? It means that, if the U.S. feels Mexico isn’t doing enough to stop immigration into the U.S., tariffs will be imposed. My feeling is this is going to happen sometime in the next few months.”

On Friday, the Dow closed 263.28 points higher at 25,983.94 to post its best week since November on hopes that the Federal Reserve would move to slash interest rates after job numbers came in lower than expected.

Job creation slowed dramatically with payrolls up just 75,000 in May, far below the consensus forecast of 180,000. It was the second time in four months that payrolls increased by less than 100,000.

Trumps tariff threat against Mexico had rattled markets, which were already facing uncertainty over the escalating trade war between the United States and China.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 25,649.30.

The projected upper bound is: 26,592.01.

The projected lower bound is: 25,390.20.

The projected closing price is: 25,991.11.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 94.8596. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 3 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 56.62. 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 3 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 116.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 3 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 1 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 263.279 at 25,983.939. Volume was 11% below average (neutral) and Bollinger Bands were 6% wider than normal.

Open High Low Close Volume___
25,768.72126,072.75025,768.72125,983.939 263,011,040

Technical Outlook
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 25,344.09 25,997.21 25,427.87
Volatility: 19 15 20
Volume: 275,628,352 282,802,208 319,197,248

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 2.2% above 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 21 periods.

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