Dow Jones Industrial Average (.DJI) investors contended with worries about the strength of the U.S. economy

Dow Jones Industrial Average (.DJI) investors contended with worries about the strength of the U.S. economy

Dow Jones Industrial Average (.DJI) investors contended with worries about the strength of the U.S. economy

U.S. stocks finished at their lows of the session on Tuesday as investors contended with worries about the strength of the U.S. economy and political developments in Europe that were weighing on government bonds.

How are the major benchmarks faring?

The Dow Jones Industrial Average DJIA, -0.66%  declined 173.35 points, or 0.7%, at 25,962.44, the S&P 500 index SPX, -0.79%  lost 23.14 points, or 0.8% to 2,900.51, while the Nasdaq Composite Index COMP, -0.68%  gave up 54.25 points, or 0.7%, to 7,948.56.

On Monday, the Dow rose 249.78 points, or 1%, to end at 26,135.79, while the S&P 500 index added 34.97 points, or 1.2%, to close at 2,923.65. The Nasdaq Composite Index advanced 106.82 points, or 1.4%, to finish at 8,002.81.

The losses represents the fourth straight decline for the Dow and the S&P 500, the lengthiest period of losses since the period ended July 15.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 26,651.76.

The projected lower bound is: 25,269.11.

The projected closing price is: 25,960.44.

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 64.2833. This is not an overbought or oversold reading. The last signal was a buy 10 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 43.75. 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 10 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 -6. 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 21 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed down -173.350 at 25,962.439. Volume was 15% below average (neutral) and Bollinger Bands were 62% wider than normal.

Open     High      Low     Close     Volume___
26,086.85926,160.11925,952.00025,962.439 238,102,064
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 25,990.30 26,608.48 25,607.16
Volatility: 26 17 20
Volume: 284,556,480 269,977,888 309,676,192

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 1.4% 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 moderate flows of volume out of .DJI (mildly bearish). Our trend forecasting oscillators are currently bearish on .DJI and have had this outlook for the last 15 periods.

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