Dow Jones Industrial Average (.DJI) Higher as Investors Prep for Fed Meeting
U.S. equity futures edged higher Monday, while the dollar held at a near two-week high against it global currency peers, as investors adopted a cautious stance on risk heading into this week’s Federal Reserve meeting while closely monitoring military developments in the Gulf region.
The Fed will start its two-rate rate setting meeting tomorrow in Washington against a backdrop of moderately improving consumer strength and a broader economy growing at around 2.1%. Interest rate traders aren’t expecting any changes to the Fed’s benchmarks, but are looking for signals from Chairman Jerome Powell as to how — and when — the central bank will react to low inflation and a trade-lead slowdown in the global economy.
Bets on central bank action, either from the Fed, the Bank of Japan or the European Central Bank, have underpinned stocks around the world in recent weeks, even as manufacturing data continues to suggest that the U.S.-China trade dispute is having knock-on effects around the world. The BoJ will meet later this week in Tokyo, while the ECB holds is annual retreat in the resort town of Sintra, Portugal, over the coming days.
Early indications from U.S. equity futures suggest modest gains on Wall Street to kick off the week, with contracts tied to the Dow Jones Industrial Average indicting a 46 point gain and those linked to the S&P 500, which has risen 4.9% so far this month, guiding to a 6.3 point gain for the broader benchmark.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 26,665.30.
The projected lower bound is: 25,508.78.
The projected closing price is: 26,087.04.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 63.6939. This is not an overbought or oversold reading. The last signal was a sell 2 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 58.02. 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 8 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 79. This is not a topping or bottoming area. The last signal was a sell 2 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 buy 6 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERG closed down -17.160 at 26,089.609. Volume was 28% below average (neutral) and Bollinger Bands were 30% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 25,770.85 25,997.43 25,434.17
Volatility: 12 14 20
Volume: 253,153,664 278,634,368 319,555,584
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 2.6% 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 2 periods.
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