Dow Jones Industrial Average (.DJI) hit by Boeing and Home Depot

Dow Jones Industrial Average (.DJI) hit by Boeing and Home Depot

Dow Jones Industrial Average (.DJI) hit by Boeing and Home Depot

The S&P 500 and the Nasdaq indexes held on to gains on Wednesday as traders awaited the Federal Reserve’s December policy statement for clues on the domestic economy’s strength, while the Dow Jones index was pressured by losses in Boeing and Home Depot.

The U.S. central bank is widely expected to keep borrowing costs steady in its policy announcement, due at 2:00 p.m. ET (1900 GMT). Markets are also awaiting Fed Chair Jerome Powell’s outlook on the economy when he holds a news conference later in the day.

“As we haven’t seen the effect of the three rate cuts that took place between June and October, the Fed might drop hints that it will keep policy as is for a while,” said David Madden, market analyst at CMC Markets in London.

Stocks have stalled so far in December after three straight months of gains, hurt by worries over a delay in the signing of an interim U.S.-China trade deal and global growth concerns.

U.S. President Donald Trump has just days to decide whether to impose levies on nearly $160 billion in Chinese goods.

“The cautionary thing is that we’ve seen these bits of news and eventually had tariffs raised. So we are definitely not out of the woods on trade policy,” said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.

The Dow Jones Industrial Average was down 48.45 points, or 0.17%, at 27,833.27, hit by a 1% drop in shares of Boeing Co after the Federal Aviation Administration (FAA) confirmed it would not allow the grounded 737 MAX to resume flying before the end of this year.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 28,444.17.

The projected lower bound is: 27,431.96.

The projected closing price is: 27,938.07.

Candlesticks

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

An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend. It then signifies that the momentum may be shifting from the bears to the bulls.

If the engulfing bullish pattern occurs during an uptrend (which appears to be the case with DJ INDU AVERG), it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.

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 75.5599. This is not an overbought or oversold reading. The last signal was a sell 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 56.37. 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 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 1. This is not a topping or bottoming area. The last signal was a buy 4 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 13 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 29.580 at 27,911.301. Volume was 12% below average (neutral) and Bollinger Bands were 53% narrower than normal.

Open     High      Low     Close     Volume___
27,867.31127,925.50027,801.80127,911.301 221,702,192
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 27,854.65 27,332.91 26,552.89
Volatility: 12 12 15
Volume: 215,240,240 245,082,560 269,306,144

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 is currently 5.1% 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 0 periods.

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