Dow Jones Industrial Average (.DJI) gains 190 points as tech stocks nudge Wall Street up
The Dow Jones Industrial Average increased nearly 190 points as the U.S. stock market rebounded slightly Thursday with the help of big tech stocks.
The Dow closed up 188.27 points, or 2.3 percent, on the day, the S&P 500 increased 0.47 percent and the Nasdaq Composite rose 2.3 percent amid volatile trading as global economies seek to navigate the COVID-19 pandemic.
Shares of tech giants anchored the boost as Uber shot up 38.26 percent, Facebook rose 4.2 percent, Amazon increased 2.78 percent and Netflix gained 5.25 percent.
Energy stocks also traded well Thursday after falling oil prices contributed to the downturn earlier in the week. Diamondback Energy and Apache rose more than 11 percent each while futures contracts associated with West Texas Intermediate crude rose 23 percent in their largest-ever one-day movement.
The dollar index, which tracks the performance of the U.S. dollar against other currencies throughout the globe, rose to its highest level since January 2017 rising 1.44 percent.
Thursday’s mild movement followed significant losses on Wednesday when the Dow closed down nearly 6 percent and finished below 20,000 for the first time since early 2017.
It also came after the European Central Bank on Wednesday announced a Pandemic Emergency Purchase Program providing $819 billion to purchase securities to help the blocs economy and the U.S. Federal Reserve earlier this month announced plans to inject $1 trillion into the economy.
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 26,371.33.
The projected upper bound is: 22,503.82.
The projected lower bound is: 17,330.70.
The projected closing price is: 19,917.26.
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 24 white candles and 26 black candles for a net of 2 black 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 26.4289. 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 32.19. 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 2 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 -108.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 12 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 19 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERG closed up 188.270 at 20,087.189. Volume was 124% above average (neutral) and Bollinger Bands were 383% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 22,408.54 27,269.65 27,104.82
Volatility: 136 71 38
Volume: 766,674,496 443,699,296 302,896,800
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.
DJ INDU AVERG is currently 25.9% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect moderate flows of volume out of .DJI (mildly bearish). Our trend forecasting oscillators are currently bearish on .DJI and have had this outlook for the last 18 periods.