Dow Jones Industrial Average (.DJI) investors are now worried about a slower than expected global growth
The New York Stock Exchange gave way to pessimism on Friday after the publication of a salvo of disappointing figures for economic activity in China, also in Europe and the United States. The Dow Jones and the S & P 500 have fallen back into the correction zone, with a loss of more than 10% from their last peaks. Investors are now worried about a slower than expected global growth. The trade war between the United States and China seems to have already done damage, while the two largest economic powers are trying to reach an agreement before the end of March to rebalance their trade.
At closing, the Dow Jones index lost 2.02% to 24,100 points, while the broad S & P 500 index ended down 1.91% at 2,599 pts, and the Nasdaq composite index fell 2.26% to 6,910 pts. The three US indices have now faced two bearish weeks. After losses of around 4.5% last week, they posted declines of 1.2% for the DJIA, 1.3% for the S & P 500 and 0.8% for the last five session.
Overall, the bias in prices is: Downwards
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 25,267.89.
The projected upper bound is: 25,060.52.
The projected lower bound is: 23,031.38.
The projected closing price is: 24,045.95.
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 24 white candles and 26 black candles for a net of 2 black candles.
A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 4 falling windows in the last 50 candles–this makes the current falling window even more bearish.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 46.8402. This is not an overbought or oversold reading. The last signal was a sell 7 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 37.67. 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 34 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 -105.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 7 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 4 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERAGE closed down -496.871 at 24,100.510. Volume was 31% above average (neutral) and Bollinger Bands were 27% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 24,774.72 25,228.04 25,086.51
Volatility: 26 26 19
Volume: 395,344,800 365,895,584 332,491,840
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.
DJ INDU AVERAGE gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
DJ INDU AVERAGE is currently 3.9% below its 200-period moving average and is in an downward trend. Volatility is high 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 3 periods.