Dow Jones Industrial Average (.DJI) Futures Signal More Gains For Stock Market Rally
Dow Jones futures rose modestly late Monday, along with S&P 500 futures and Nasdaq futures, after the current stock market rally roared back from five straight losses. Growth stocks led Monday, with Palo Alto Networks stock, Synopsys stock, Adobe stock and SS&C stock all reclaiming buy points. Meanwhile, fellow software name Coupa Software (COUP) topped earnings views late, but Coupa stock was little changed.
Dow Jones futures rose 0.4% vs. fair value. S&P 500 futures climbed 0.3%. Nasdaq 100 futures advanced 0.4%. Keep in mind 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 indicated a modest loss ahead of Monday’s open, while other stock futures pointed modestly higher.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 25,146.42.
The projected upper bound is: 26,358.35.
The projected lower bound is: 25,054.31.
The projected closing price is: 25,706.33.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 33 white candles and 17 black candles for a net of 16 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 32.0416. This is not an overbought or oversold reading. The last signal was a buy 0 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 54.30. 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 sell 9 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 -121.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 9 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 sell 7 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERG closed up 200.641 at 25,650.881. Volume was 11% below average (neutral) and Bollinger Bands were 51% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 25,785.96 24,864.96 25,132.07
Volatility: 9 17 20
Volume: 281,508,192 312,407,136 320,803,840
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 2.1% above its 200-period moving average and is in an downward trend. Volatility is relatively normal 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 1 periods.