Home Headline News Dow Jones Industrial Average (.DJI) higher following a report that a...

Dow Jones Industrial Average (.DJI) higher following a report that a phase-one trade U.S.-China trade deal was still in the works

30
0

Dow Jones Industrial Average (.DJI) higher following a report that a phase-one trade U.S.-China trade deal was still in the works

U.S. stocks closed higher for the first time in four sessions following a report that a phase-one trade U.S.-China trade deal was still in the works, helping to offset fears of a delay sparked a day earlier by President Donald Trump’s remarks.

What did the major benchmarks do?

The Dow Jones Industrial Average rose 146.97 points, 0.5%, to 27,649.78. The S&P 500 index SPX, +0.63% added 19.56 points, or 0.6%, to close at 3,112.76. The Nasdaq Composite Index COMP, +0.54% advanced 46.03 points, or 0.5%, to end the session at 8,566.67.

What drove the market?

U.S. stock-index benchmarks recovered some of the week’s lost ground after Bloomberg News, citing sources familiar, reported that Beijing and Washington were making progress toward a phase-one trade pact. The comments also helped to provide a lift to European equities.

Bloomberg’s report said any partial resolution on trade would be complete before another set of China tariffs kick in on Dec. 15. The news comes after stocks broadly slumped on Tuesday following a President Trump news conference in London, where he indicated there was “no deadline” when it comes to concluding the nearly two-year-old U.S.-China trade spat. He made those comments at a NATO meeting.

“While yesterday, the odds of an imminent trade deal seemed slim in the wake of the President’s hawkish words, we got upbeat reports regarding the state of the negotiations overnight,” wrote Ken Berman, strategist at Gorilla Trades, in a note.

“Even though the large-cap benchmarks are still well below last week’s all-time highs, the Volatility Index VIX, -1.15%  plunged back below the 15 level while small-caps are keeping up with the broader market, which both point to healthy risk appetite,” he added.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 28,183.24.

The projected lower bound is: 27,150.00.

The projected closing price is: 27,666.62.

Candlesticks

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 28 white candles and 22 black candles for a net of 6 white candles.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 8 rising windows in the last 50 candles–this makes the current rising window even more bullish.

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 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 24.0414. 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 50.19. 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 sell 3 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 -100.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 3 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 8 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 146.969 at 27,649.779. Volume was 16% below average (neutral) and Bollinger Bands were 46% narrower than normal.

Open     High      Low     Close     Volume___
27,634.63127,727.44927,612.08027,649.779 218,199,296
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 27,880.22 27,228.44 26,506.00
Volatility: 11 12 14
Volume: 234,004,320 246,783,680 270,450,560

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 AVERG gapped up today (bullish) 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 4.3% above its 200-period moving average and is in an upward 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 bullish on .DJI and have had this outlook for the last 23 periods.

Previous articleUnited States Oil (USO) prices could plunge 30% if OPEC fails to act
Next articleBitcoin: USD/BTC (BTC=X) Is $6500 Incoming?
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.