Dow Jones Industrial Average (.DJI) investors watched for further signs of a thaw in the protracted trade dispute between the U.S. and China

Dow Jones Industrial Average (.DJI) investors watched for further signs of a thaw in the protracted trade dispute between the U.S. and China

Dow Jones Industrial Average (.DJI) investors watched for further signs of a thaw in the protracted trade dispute between the U.S. and China

U.S. stocks on Monday closed higher, building on Friday’s powerful rally, as investors watched for further signs of a thaw in the protracted trade dispute between the U.S. and China — a tit-for-tat clash that has weighed on investor sentiment.

How did the major indexes fare?

The Dow Jones Industrial Average DJIA, +0.42% rose 98.19 points, or 0.4%, to finish at 23,531.35, while the S&P 500 index SPX, +0.70% advanced 17.75 points, or 0.7%, to 2,549.69. The Nasdaq Composite Index COMP, +1.26% jumped 84.61 points, or 1.3%, to 6,823.47.

Senior officials from China unexpectedly showed up for negotiations between Beijing and their counterparts in Washington in an effort to resolve longstanding trade disagreements that have triggered uncertainty in global markets.

Chinese Vice Premier Liu He, a top economic adviser to Chinese President Xi Jinping, was among attendees, sparking some optimism given the symbolism of a top-level bureaucrat attending the talks, according to Bloomberg.

Trade officials from both countries are looking to hammer out an agreement over the next 48 hours, but there are doubts over how to best ensure that both countries follow through on promises made during talks with Trump administration worried about enforcement.

Investors are also keeping an eye on the partial government shutdown, now in its 17th day, with some government employees expected to see their first missed paycheck as a result of an impasse between President Donald Trump and Democratic lawmakers over funding for a U.S.-Mexico border wall.

Elsewhere, British Prime Minister Theresa May set a Jan. 15 date for a parliamentary vote on her plan for exiting from the European Union, which she is widely expected to lose.

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 24,373.75.

The projected upper bound is: 24,677.85.

The projected lower bound is: 22,318.45.

The projected closing price is: 23,498.15.

Candlesticks

A white body occurred (because prices closed higher 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 25 white candles and 25 black 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 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 68.4901. This is not an overbought or oversold reading. The last signal was a sell 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 47.64. 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 7 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 73. This is not a topping or bottoming area. The last signal was a buy 6 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 3 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 98.189 at 23,531.350. Volume was 4% below average (neutral) and Bollinger Bands were 54% wider than normal.

Open High Low Close Volume___
23,474.26023,687.74023,301.59023,531.350 334,203,936

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

Moving Averages: 10-period 50-period 200-period
Close: 22,964.17 24,488.48 24,961.41
Volatility: 45 31 21
Volume: 415,131,936 392,174,944 335,787,104

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 5.7% 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 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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