Dow Jones Industrial Average (.DJI) Hovering Around Record High Territory

Dow Jones Industrial Average (.DJI) Hovering Around Record High Territory

Dow Jones Industrial Average (.DJI) Hovering Around Record High Territory

A strong month for the Dow Jones, gaining over 4% in November with the index hovering around record high territory. As the final month of the decade begins eyes will be on the plethora of key US data releases, starting with the ISM Manufacturing PMI. After last months uptick, expectations are for another lift, which in turn may see US equities push for better levels. That said, risks remain with market participants seemingly getting more complacent with VIX shorts extending its record levels.

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 27,380.29.

The projected upper bound is: 28,563.94.

The projected lower bound is: 27,577.15.

The projected closing price is: 28,070.54.

Candlesticks

A black body occurred (because prices closed lower 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 27 white candles and 23 black candles for a net of 4 white candles.

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 88.1294. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 6 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 66.02. This is not a topping or bottoming area. However, the RSI just crossed below 70 from a topping formation. This is a bearish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 0 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 82. This is not a topping or bottoming area. The last signal was a sell 0 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 AVERG closed down -112.590 at 28,051.410. Volume was 53% below average (consolidating) and Bollinger Bands were 36% narrower than normal.

Open     High      Low     Close     Volume___
28,103.16028,119.51028,042.52928,051.410 122,621,088
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 27,984.17 27,183.58 26,479.96
Volatility: 8 12 14
Volume: 240,773,248 252,877,088 271,284,896

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 5.9% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 20 periods.

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