Dow Jones Industrial Average (.DJI) Futures Signal Modest Stock Market Rally

Dow Jones Industrial Average (.DJI) Futures Signal Modest Stock Market Rally

Dow Jones Industrial Average (.DJI) Futures Signal Modest Stock Market Rally

Dow Jones futures edged higher early Thursday, along with S&P 500 futures and Nasdaq futures, looking to extend Wednesday’s stock market rally despite ongoing Trump impeachment news. Beyond Meat (BYND) spiked before the open on news that McDonald’s (MCD) will test its fake-meat patties in some Ontario, Canada locations. Micron Technology (MU) earnings are on tap after the close, with Micron stock and many chip names in or near buy zones.

The stock market rally had a solid rebound Wednesday with investors focusing on China trade deal hopes vs. Trump impeachment news. Nike stock broke out on blowout earnings, while fellow Dow components Apple stock, Microsoft stock and Boeing stock all rose more than 1%.

Bottom line: Trump trade talk trumped Trump impeachment news, at least for one day.

Dow Jones Futures Today

Dow Jones futures rose 0.3% vs. fair value, shifting from slim overnight declines. S&P 500 futures climbed 0.2% while Nasdaq 100 futures were up 0.1%.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session. Dow Jones futures were generally slightly lower before Wednesday’s open, not offering any sign of the day’s solid gains.

Technical Indicators

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 26,664.75.

The projected upper bound is: 27,663.74.

The projected lower bound is: 26,105.35.

The projected closing price is: 26,884.54.

Candlesticks

A black body occurred (because prices closed lower 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 27 white candles and 23 black candles for a net of 4 white candles.

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 34.1531. This is not an overbought or oversold reading. The last signal was a buy 1 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 53.65. 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 36 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 -65. This is not a topping or bottoming area. The last signal was a sell 8 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 sell 3 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed down -79.592 at 26,891.119. Volume was 13% below average (neutral) and Bollinger Bands were 23% narrower than normal.

Open     High      Low     Close     Volume___
27,004.10927,015.07026,803.84026,891.119 230,797,776
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 27,020.37 26,586.67 25,796.08
Volatility: 7 19 18
Volume: 263,160,832 270,883,680 296,042,144

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 4.2% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of .DJI at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on .DJI and have had this outlook for the last 14 periods.

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