Dow Jones Industrial Average (.DJI) investors weighed mounting political tension

Dow Jones Industrial Average (.DJI) investors weighed mounting political tension

Dow Jones Industrial Average (.DJI) investors weighed mounting political tension

U.S. stocks closed mostly lower Tuesday in a session that saw the key indexes weave in and out of positive territory as investors weighed mounting political tension in the nation’s capital against renewed optimism over U.S.-China trade talks.

How did the benchmarks fare?
The Dow Jones Industrial Average DJIA, -0.22% shed 53.02 points, or 0.2%, to 24,370.24 while the S&P 500 index SPX, -0.04% slipped 0.94 point to 2,636.78 and the Nasdaq Composite Index COMP, +0.16% edged up 11.31 points, or 0.2%, to 7,031.83.

What drove the market?

A contentious meeting between President Donald Trump and Democratic leaders Chuck Schumer and Nancy Pelosi over border security, with Trump threatening to shut down government, battered already fragile sentiment.

Stocks had charged higher at the opening bell after the U.S. and China launched formal trade talks with a phone call. The initial conversation included Treasury Secretary Steven Mnuchin, U.S. Trade Representative Robert Lighthizer and Chinese Vice Premier Liu He, where they discussed changes to fundamental Chinese economic policies.

In the call, China informed U.S. officials that it had agreed to reduce tariffs on U.S. autos to 15%, down from 40%. The move was credited with lifting shares of Ford Motor Company F, +0.23% and General Motors Co. GM, +0.78%

Overall, the bias in prices is: Downwards

By the way, prices are vulnerable to a correction towards 25,364.63.

The projected upper bound is: 25,328.79.

The projected lower bound is: 23,328.17.

The projected closing price is: 24,328.48.

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 24 white candles and 26 black candles for a net of 2 black 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 20.5547. This is not an overbought or oversold reading. The last signal was a sell 4 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 39.80. 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 31 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 -60. This is not a topping or bottoming area. The last signal was a sell 4 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 1 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERAGE closed down -53.020 at 24,370.240. Volume was 9% above average (neutral) and Bollinger Bands were 23% wider than normal.

Open High Low Close Volume___
24,719.91024,791.26024,221.06124,370.240 342,962,560

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

Moving Averages: 10-period 50-period 200-period
Close: 24,997.61 25,368.61 25,095.63
Volatility: 29 25 19
Volume: 386,772,000 360,205,632 334,168,320

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 AVERAGE is currently 2.9% 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 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 0 periods.

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