Dow Jones Industrial Average (.DJI) hope of easing U.S.-China trade woes
U.S. stocks extended a multiday rally to end higher Thursday, with the S&P 500 and Dow notching consecutive days of gains, as technology stocks rebounded from their recent slump. Optimism pinned to signs of easing trade tensions partly helped to buttress the market’s advance.
The Dow Jones Industrial Average DJIA, +0.57% rose 147 points, or 0.6%, at 26,145 , the S&P 500 index SPX, +0.53% added 0.5% at 2,904, while the Nasdaq Composite Index COMP, +0.75% finished higher, up 0.8% at 8,014, after retreating on Wednesday as shares of chip makers, as measured by the iShares PHLX Semiconductor ETF SOXX, +1.14% slumped.
The popular chip-maker ETF rose 1.1% on Thursday, led by gains of 4.5% in Micron Technology Inc. MU, +4.50% after the fund finished Wednesday down 1.2%. On Thursday, Treasury Secretary Steven Mnuchin invited top
Beijing officials for further trade talks, marking a potential softening of testy negotiations between the world’s largest economies, with investors fearing that an escalation could hurt global economies.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 25,344.68.
The projected upper bound is: 26,572.21.
The projected lower bound is: 25,798.62.
The projected closing price is: 26,185.41.
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 33 white candles and 17 black candles for a net of 16 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 74.2988. This is not an overbought or oversold reading. The last signal was a sell 8 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 65.60. 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 152 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 148.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 9 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 5 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERAGE closed up 147.070 at 26,145.990. Volume was 10% below average (neutral) and Bollinger Bands were 45% narrower than normal.
Open High Low Close Volume___
26,083.93926,191.64126,067.08026,145.990 260,800,880
Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 25,976.47 25,467.27 24,945.69
Volatility: 6 10 18
Volume: 266,312,544 255,761,568 355,928,992
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 AVERAGE is currently 4.8% above its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into .DJI (mildly bullish). Our trend forecasting oscillators are currently bullish on .DJI and have had this outlook for the last 43 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.
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