Dow Jones Industrial Average (.DJI) What Next?

Dow Jones Industrial Average (.DJI) What Next?

Dow Jones Industrial Average (.DJI) holding close to break even

Stocks ended mixed Thursday as the three major stock indexes reacted to reports on stalled trade talks with China. President Trump had said he was no rush to complete a trade pact with China, but on Thursday both he and Treasury Secretary Steven Mnuchin said that discussions with China to end the months-long trade war are progressing quickly.

Trump said he could not say whether a final deal would be reached.

Shayne Heffernan said “America is slowly coming to learn that China matters”

The Dow Jones Industrial Average ended up 7.05, or 0.03%, at 25,709, the S&P 500 was down 0.09% and the Nasdaq fell 0.16%.

Prices of imported goods in the U.S. rose more than expected in February, driven by a jump in fuel costs. Import prices rose 0.6%, after falling 0.5% a month earlier, the Labor Department said. Economists had expected a 0.3% increase. In addition, initial  claims for state unemployment benefits rose 6,000 to a seasonally adjusted 229,000 for the week ended March 9. Economists had forecast claims rising to 225,000. The four-week moving average of initial claims slipped 2,500 to 223,750 last week.

New home sales fell 6.9% to a seasonally adjusted annual rate of 607,000 units, the Commerce Department said. December’s sales pace was revised higher to 652,000 units from the previously reported 621,000 units. Economists had called for new home sales to slip 0.6% to a pace of 620,000 units in January.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 26,399.54.

The projected lower bound is: 25,115.64.

The projected closing price is: 25,757.59.

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 33 white candles and 17 black candles for a net of 16 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 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 76.0499. This is not an overbought or oversold reading. The last signal was a buy 3 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 55.50. 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 12 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 -28. This is not a topping or bottoming area. The last signal was a buy 2 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 10 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 7.049 at 25,709.939. Volume was 12% below average (neutral) and Bollinger Bands were 62% narrower than normal.

Open High Low Close Volume___
25,692.31125,752.84025,621.31125,709.939 302,790,784

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 25,686.79 25,013.73 25,144.65
Volatility: 10 17 20
Volume: 291,005,728 310,675,872 320,518,048

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 2.2% above its 200-period moving average and is in an downward trend. Volatility is low as compared to the average volatility over the last 10 periods. 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 4 periods.

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