Dow Jones Industrial Average (.DJI) global share market sell-off persists

Dow Jones Industrial Average (.DJI) global share market sell-off persists

The global market sell-off continued overnight, with Wall Street falling sharply amid a volatile trading session.

At one point in the New York morning, the major US share indices were slightly higher, before capitulating and then recovering slightly in late trade.

Investors are retreating from risky investments like shares, over concerns about rising interest rates and the impact of trade wars on corporate earnings.

At its worst, the Dow Jones index dropped by as much as 699 points, before closing 546 points (2.1 per cent) lower at 25,053.

It was less severe than yesterday, when the Dow tumbled by 832 points — its worst day in eight months.

In total, America’s industrial index plummeted by 1,378 points over two days.

The benchmark index, the S&P 500, experienced its sixth straight day of losses, falling 2.1 per cent to 2,728.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 25,615.12.

The projected lower bound is: 24,479.30.

The projected closing price is: 25,047.21.

Candlesticks

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 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 9.8678. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 5 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 26.49. 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 sell 5 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 -322.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 5 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 4 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERAGE closed down -545.910 at 25,052.830. Volume was 84% above average (neutral) and Bollinger Bands were 46% wider than normal.

Open High Low Close Volume___
25,518.39125,683.64124,899.77025,052.830 522,876,544

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 26,335.53 25,989.47 25,140.09
Volatility: 22 14 19
Volume: 311,413,088 268,642,880 350,240,128

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 AVERAGE is currently 0.3% 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 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. Our momentum oscillator is currently indicating that .DJI is currently in an oversold condition.

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