Dow Jones Industrial Average (.DJI) investors worry about continuing trade tensions

Dow Jones Industrial Average (.DJI) investors worry about continuing trade tensions

Dow Jones Industrial Average (.DJI) investors worry about continuing trade tensions

The Dow Jones Industrial Average fell 507.53 points to 23,592.98, and the Nasdaq fell 2.2% to close at 6,753.73. The Dow has lost more than 1,000 points in two days.

The Dow and S&P 500 are both technically in a correction, meaning values have fallen at least 10% since recent peaks. The drops come as investors worry about continuing trade tensions, a court ruling declaring Obamacare unconstitutional, the potential partial government shutdown, the unresolved Brexit issue, and a rising backlash against big tech companies.

Microsoft and Amazon both saw their stocks drop Monday, as did a number of healthcare companies potentially affected by the court ruling, which likely won’t go into effect until after several rounds of appeals.

President Donald Trump, who previously touted stock market gains during his presidency, has publicly urged the Federal Reserve to stop raising interest rates, which can slow economic growth.

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 25,163.49.

The projected upper bound is: 24,562.87.

The projected lower bound is: 22,501.71.

The projected closing price is: 23,532.29.

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.

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 30.3249. This is not an overbought or oversold reading. The last signal was a sell 8 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 32.73. 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 35 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 -156.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 8 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 5 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERAGE closed down -507.529 at 23,592.980. Volume was 45% above average (neutral) and Bollinger Bands were 41% wider than normal.

Open High Low Close Volume___
23,986.83024,088.08023,456.88123,592.980 466,740,000

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

Moving Averages: 10-period 50-period 200-period
Close: 24,580.18 25,167.36 25,081.79
Volatility: 27 26 19
Volume: 393,793,856 369,438,464 332,639,872

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 5.9% 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 4 periods.

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