Dow Jones Industrial Average (.DJI) futures slid after China’s government blamed the U.S. for the latest collapse in trade talks
U.S. stock-index futures slid after China’s government blamed the U.S. for the latest collapse in trade talks.
Contracts on the S&P 500 Index lost as much as 0.7% after Beijing released a white paper on Sunday saying the escalating trade war between the world’s two largest economies hasn’t “made America great again” — appropriating President Donald Trump’s 2016 campaign slogan. Futures on the Nasdaq 100 fell as much as 0.8%, while those on the Dow Jones Industrial Average also declined as much as 0.8%.
The S&P 500 Index sank 1.3% on Friday in New York after Trump threatened to place escalating tariffs on Mexico, as U.S. stocks capped their first first monthly decline since last December’s market rout. The Dow Jones Industrial average recorded its sixth weekly loss, the longest slump since 2011.
China contends that Washington’s trade moves have done serious harm to the U.S. economy by increasing production costs, causing prices hikes, damaging growth and people’s livelihoods and creating barriers to U.S. exports to China.
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 25,688.91.
The projected upper bound is: 25,375.59.
The projected lower bound is: 24,217.27.
The projected closing price is: 24,796.43.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.
A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 6 falling windows in the last 50 candles–this makes the current falling window even more bearish.
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 16.1881. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 26 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 29.83. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 12 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 -183.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 4 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 24 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERG closed down -354.842 at 24,815.039. Volume was 2% below average (neutral) and Bollinger Bands were 23% wider than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 25,463.31 26,014.59 25,428.14
Volatility: 13 14 20
Volume: 275,550,240 287,135,648 319,229,856
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 gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
DJ INDU AVERG is currently 2.4% 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 16 periods. Our momentum oscillator is currently indicating that .DJI is currently in an oversold condition. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.
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