Dow Jones Industrial Average (.DJI) hits a record high for the second time this week

Dow Jones Industrial Average (.DJI) hits a record high for the second time this week

Dow Jones Industrial Average (.DJI) hits a record high for the second time this week

Stocks closed broadly higher on Wall Street on Wednesday, sending the S&P 500 to a record high for the second time this week, as investors welcomed the Federal Reserve’s decision to lower interest rates for the third time this year.

The central bank also indicated that it won’t cut rates again in the coming months unless the economic outlook worsens.

Stocks wobbled shortly after the Fed’s midafternoon announcement, which had been widely anticipated by traders. The market then rallied into the close, led by gains in technology and health care stocks. Bond yields fell.

“The rate cut was expected and also the market had been expecting a change in the language regarding another rate cut this year,” said Quincy Krosby, chief market strategist at Prudential Financial. “The Fed just basically upped the bar for another rate cut by suggesting that the economy is in a good place.”

The S&P 500 index rose 9.88 points, or 0.3%, to 3,046.77. The benchmark index also hit record high on Monday.

The Dow Jones Industrial Average gained 115.27, or 0.4%, to 27,186.69. The Nasdaq composite added 27.12 points, or 0.3%, to 8,303.98.

Technical Indicators

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 26,678.51.

The projected upper bound is: 27,827.71.

The projected lower bound is: 26,594.64.

The projected closing price is: 27,211.17.

Candlesticks

A white body occurred (because prices closed higher than they opened).
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 white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 86.3080. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 4 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 60.88. 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 60 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 123.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 15 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 buy 12 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 115.270 at 27,186.689. Volume was 11% below average (neutral) and Bollinger Bands were 21% narrower than normal.

Open     High      Low     Close     Volume___
27,110.71127,204.35926,999.64127,186.689 231,753,792
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 26,935.82 26,689.33 26,182.63
Volatility: 8 15 15
Volume: 259,928,112 249,146,528 278,880,512

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 3.8% above its 200-period moving average and is in an downward 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 bearish on .DJI and have had this outlook for the last 18 periods.

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