Dow Jones Industrial Average (.DJI) logs 7th gain in a row on renewed trade optimism
The Dow marked its longest win streak in more than a year Thursday, after the European Central Bank’s announced fresh stimulus measures, including an interest-rate cut that moved a deposit rate further into negative territory, raising hopes that the Federal Reserve may also enact easy-money policies next month.
The market had been on an uptrend early in the day following reports suggesting that U.S. and China trade aggressions continued to soften ahead of meeting next month.
How are the major benchmarks performing?
The Dow Jones Industrial Average DJIA, +0.17% rose 45.41 points, or 0.2%, to close at 27,182.45, notching a seventh advance and the longest series of gains for the blue-chip index since an eight-session rally ended May 14, 2018, according to FactSet data. Meanwhile, the S&P 500 index SPX, +0.29% added 8.64 points, or 0.3%, to finish at 3,009.57, while the Nasdaq Composite Index COMP, +0.30% advanced 24.79 points, or 0.3%, to end at 8,194.47.
All three benchmarks ended the day off their best levels as market’s pulled back as the index’s came within striking distance of recent closing highs.
Thursday’s action left the Dow and S&P just about 0.7% and 0.5% from their respective record closes, while the Nasdaq ended the day 1.6% from its all-time closing high.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 27,977.98.
The projected lower bound is: 26,402.75.
The projected closing price is: 27,190.37.
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 28 white candles and 22 black candles for a net of 6 white 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 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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 93.0848. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 7 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 63.36. 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 26 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 125.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 7 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 15 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERG closed up 45.410 at 27,182.449. Volume was 6% below average (neutral) and Bollinger Bands were 24% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 26,682.91 26,596.05 25,696.29
Volatility: 13 19 20
Volume: 244,627,856 260,367,792 302,039,296
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.
DJ INDU AVERG is currently 5.8% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume into .DJI (mildly bullish). Our trend forecasting oscillators are currently bullish on .DJI and have had this outlook for the last 4 periods.
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