Dow Jones Industrial Average (.DJI) investors grew even more confident that the Federal Reserve will lower interest rates

Dow Jones Industrial Average (.DJI) investors grew even more confident that the Federal Reserve will lower interest rates

Dow Jones Industrial Average (.DJI) investors grew even more confident that the Federal Reserve will lower interest rates

Stocks added to strong week-to-date performance on Wednesday as investors grew even more confident that the Federal Reserve will lower interest rates this year to reignite an economy wounded by trade battles.

The Dow Jones Industrial Average rose 207.39 points to 25,539.57, while the S&P 500 advanced 0.8% to 2,826.15. The Nasdaq Composite closed 0.6% higher at 7,575.48. The Dow surged more than 500 points on Tuesday — its second-best day of the year —after Fed Chair Jerome Powell opened the door to rate cuts.

Powell said the central bank will keep an eye on current developments in the economy, and would do what it must to “sustain the expansion. ”

“The Fed is being very accomodative and they seem to be moving in that direction,” said Tobias Carlisle, founder of Acquirers Funds. “They’re inclined to cut rates by 75 basis points by the end of the year; I think it will be 25 by the end of the year, depending on what happens with Mexico and other things like that.”

Tech shares jumped 1.4% while the utilities and real estate sectors got a boost from lower rates. Apple contributed to tech’s gains, rising 1.6% after CEO Tim Cook said the company had not been targeted by China amid rising U.S.-China trade fears. Salesforce, meanwhile, rose 5.1% on stronger than expected earnings.

The consumer staples sector also rose more than 1%, led by an 8.6% rally in Campbell Soup. The stock popped on quarterly numbers that topped Wall Street estimates.

Worries over the economy increased recently amid weakening economic data and persisting trade tensions.

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 25,643.42.

The projected upper bound is: 26,129.03.

The projected lower bound is: 24,951.02.

The projected closing price is: 25,540.03.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 6 rising windows in the last 50 candles–this makes the current rising window even more bullish.

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 64.3367. This is not an overbought or oversold reading. The last signal was a buy 1 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 48.30. 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 1 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 11. This is not a topping or bottoming area. The last signal was a buy 1 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 27 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 207.391 at 25,539.570. Volume was 12% below average (neutral) and Bollinger Bands were 6% wider than normal.

Open High Low Close Volume___
25,451.00025,544.66025,373.58025,539.570 262,658,320

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 25,300.34 25,988.79 25,426.49
Volatility: 19 15 20
Volume: 280,389,664 284,089,664 319,305,504

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 gapped up today (bullish) 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 AVERG is currently 0.4% above 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 19 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH