Dow Jones Industrial Average (.DJI) investors awaited a key speech from the Federal Reserve’s top official
The Dow Jones Industrial Average rose slightly on Thursday as investors awaited a key speech from the Federal Reserve’s top official.
The 30-stock index climbed 49.51 points, or 0.2% to 26,252.24 in a volatile session that saw it rise as much as 186.05 points and drop 103.72 points. Boeing’s 4.2% gain pushed the Dow higher. The S&P 500 ended the day just below the flatline at 2,922.95 while the Nasdaq Composite slid 0.4% to 7,991.39.
Fed Chairman Jerome Powell is set to deliver a speech Friday at a yearly central banking symposium in Jackson Hole, Wyoming. The stakes are high for Powell as investors will look for hints that the Fed will cut rates in September. Market expectations for a September rate cut are at 93.5%, according to the CME Group’s FedWatch tool. The Fed cut rates by 25 basis points in July, citing “global developments” and “muted inflation.”
Other Fed officials raised concern about how certain a September rate cut was. Kansas City Fed President Esther George told CNBC’s Steve Liesman that the Fed should not have cut interest rates last month, stating that “it wasn’t required in my view. ” George is a voting member on the Fed’s policymaking committee.
Meanwhile, Philadelphia Fed President Patrick Harker said he does not see the need for another rate cut, noting the central bank should keep rates at this level “for a while. ” Harker is a nonvoting member on the central bank’s policymaking committee.
“We’ve now had two trial balloons from Fed officials saying ‘We don’t see any reason to lower rates in September,’” said Sam Stovall, chief investment strategist at CFRA Research. “I think the Fed is trying to shake the bushes and see how would the market react if they did not cut rates at all.”
Overall, the bias in prices is: Sideways.
The projected upper bound is: 26,955.91.
The projected lower bound is: 25,558.47.
The projected closing price is: 26,257.19.
A black body occurred (because prices closed lower 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 28 white candles and 22 black candles for a net of 6 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 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 81.6812. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 12 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 48.71. 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 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 87. This is not a topping or bottoming area. The last signal was a buy 4 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 buy 1 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERG closed up 49.510 at 26,252.240. Volume was 20% below average (neutral) and Bollinger Bands were 40% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 25,997.27 26,616.51 25,616.18
Volatility: 25 17 20
Volume: 264,349,344 269,066,464 307,766,944
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 AVERG is currently 2.5% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 17 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.
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