Dow Jones Industrial Average (.DJI) investors focusing on U.S.-China trade

Dow Jones Industrial Average (.DJI) investors focusing on U.S.-China trade

Dow Jones Industrial Average (.DJI) investors focusing on U.S.-China trade

The Dow Jones Industrial Average finished lower for a second day in a row as investors digested a reading on May consumer inflation and continued to eye the U.S.-China trade fight.

How did benchmarks perform?

The Dow Jones Industrial Average DJIA, -0.17% ended down 43.68 points, or 0.2%, at 26,004.83, marking its first back-to-back loss this month, while the S&P 500 index SPX, -0.20% lost 5.88 points, or 0.2%, to finish at 2,879.84. The Nasdaq Composite Index COMP, -0.38% fell 29.85 points, or 0.4%, to 7,792.72.

The Dow is on pace for a slight weekly gain of 0.1%, the S&P 500 is on track for a 0.2% rise, and the Nasdaq is looking at a 0.7% weekly climb.

What drove the market?

Tariffs remain the focus for Wall Street. Responding to reporter questions in the Rose Garden on Wednesday President Donald Trump said he didn’t have a deadline for imposing additional tariffs on Chinese. “My deadline is all up here,” he said, pointing to his head.

On Tuesday, Trump said he was the one “holding up” a trade deal with China, saying the two countries would “either do a great deal…or we’re not doing a deal at all.”

Analysts blamed the remarks for casting a somewhat negative tone over global equities.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 26,577.42.

The projected lower bound is: 25,422.10.

The projected closing price is: 25,999.76.

Candlesticks

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 24 white candles and 26 black candles for a net of 2 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 79.2560. This is not an overbought or oversold reading. The last signal was a sell 0 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 56.50. 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 6 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 99. 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 buy 4 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed down -43.680 at 26,004.830. Volume was 23% below average (neutral) and Bollinger Bands were 20% wider than normal.

Open High Low Close Volume___
26,040.30126,082.10025,958.66026,004.830 223,691,856

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 25,549.71 26,001.44 25,432.39
Volatility: 16 14 20
Volume: 261,759,152 280,664,160 319,552,672

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 2.3% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of .DJI at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on .DJI and have had this outlook for the last 0 periods.

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