Dow Jones Industrial Average (.DJI) Leads As Major Market Indexes Retake This Key Support Level

Dow Jones Industrial Average (.DJI) Leads As Major Market Indexes Retake This Key Support Level

Dow Jones Industrial Average (.DJI) Leads As Major Market Indexes Retake This Key Support Level

The Dow Jones industrials climbed 0.3% and the S&P 500 added 0.1%, but the Nasdaq slipped nearly 0.2%. Small caps tracked by the Russell 2000 gave up 0.3%. Unofficial data showed lower volume on the NYSE and Nasdaq vs. Thursday.

The stock market’s finish was similar to the way it started the session: narrowly mixed. August nonfarm payrolls rose 130,000, well below forecasts for 163,000.

Still, the Dow Jones index rallied nearly 400 points, or 1.5%, for the week. The S&P 500 surged 1.7% and the Nasdaq composite, also 1.7%. That marked the Dow and S&P 500’s first close above the 10-week moving average in six weeks — five weeks for the Nasdaq. All three indexes are now less than 3% away from record highs.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 27,586.29.

The projected lower bound is: 26,019.06.

The projected closing price is: 26,802.67.

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 28 white candles and 22 black candles for a net of 6 white candles.

A doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is 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 87.3676. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 3 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 58.10. 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 22 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 167.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 3 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 11 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 69.311 at 26,797.461. Volume was 22% below average (neutral) and Bollinger Bands were 7% narrower than normal.

Open     High      Low     Close     Volume___
26,790.25026,860.86926,708.39126,797.461 209,701,008
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 26,210.64 26,567.37 25,647.14
Volatility: 22 19 20
Volume: 238,122,224 262,931,552 302,672,352

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 4.5% above its 200-period moving average and is in an upward 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 bullish on .DJI and have had this outlook for the last 0 periods.

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