Home Headline News Dow Jones Industrial Average (.DJI) investors have returned from their Memorial Day...

Dow Jones Industrial Average (.DJI) investors have returned from their Memorial Day long weekend with US-China trade anxiety on their minds

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Dow Jones Industrial Average (.DJI) investors have returned from their Memorial Day long weekend with US-China trade anxiety on their minds

Wall Street investors have returned from their Memorial Day long weekend with US-China trade anxiety on their minds.

Weighing on investor sentiment was US President Donald Trump’s latest comments about the trade dispute between Washington and Beijing.

On Monday (local time), the US President said he was “not yet ready” to make a deal with China, but he expected one in the future.

However, Mr Trump also said US tariffs on Chinese imports could still “go up very, very substantially, very easily”.

Both nations have already imposed hundreds of billions of dollars in tariffs on each other’s imports, and market participants were worried further retaliation would lead to a global economic slowdown.

The Dow Jones index tumbled 238 points, down 0.9 per cent to 25,348.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 25,894.81.

The projected lower bound is: 24,780.68.

The projected closing price is: 25,337.75.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.

An engulfing bearish line occurred (where a black candle’s real body completely contains the previous white candle’s real body). The engulfing bearish pattern is bearish during an uptrend. It then signifies that the momentum may be shifting from the bulls to the bears.

If the engulfing bearish pattern occurs during a downtrend (which appears to be the case with DJ INDU AVERG), it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle’s real body.

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 24.9664. This is not an overbought or oversold reading. The last signal was a sell 23 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 37.23. 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 9 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 -92. 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 21 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed down -237.920 at 25,347.770. Volume was 21% above average (neutral) and Bollinger Bands were 11% wider than normal.

Open High Low Close Volume___
25,616.55125,717.63125,342.27925,347.770 364,845,856

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

Moving Averages: 10-period 50-period 200-period
Close: 25,656.45 26,063.31 25,432.63
Volatility: 13 14 20
Volume: 283,234,176 290,355,712 318,545,056

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 0.3% 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 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 13 periods.

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