Dow Jones Industrial Average (.DJI) Look Set to Continue

Dow Jones Industrial Average (.DJI) Look Set to Continue

Dow Jones Industrial Average (.DJI) Look Set to Continue

Stocks eked out modest gains Wednesday after investors digested a slew of earnings reports from some of America’s largest companies, including Dow components Caterpillar and Boeing, shares of which rose despite both companies reporting weaker-than-expected earnings declines.

Wall Street is also watching developments pegged to Brexit, after a vote for a fast-track exit for Britain from the EU was rejected by parliament on Tuesday, but the delay eases concerns about the U.K. crashing out of the bloc without a deal on Oct. 31.

How did the major indexes fare?

The Dow Jones Industrial Average DJIA, +0.17% rose 45.85 points, or 0.2%, at 26,833.95, while the S&P 500 index SPX, +0.28% added 8.53 points to reach 3,004.52 a gain of 0.3%. The Nasdaq Composite Index COMP, +0.19%, advanced 15.50 points, or 0.2%, hitting 8,119.79.

On Tuesday, the Dow lost 39.54 points, or 0.2%, to 26,788.10, the S&P 500 index fell 10.73 points, or 0.4%, to 2,995.99, while the Nasdaq shed 58.69 points, or 0.7%, to 8,104.30.

What drove the market?

Results from Caterpillar Inc. CAT, +1.23% and Boeing Co. BA, +1.04% initially knocked the market lower in pre-market action on Wednesday, but stocks turned higher in early trading as investors took positives away from quarterly results from the blue-chip components.

Caterpillar missed both earnings and revenue estimates and cut its full-year 2019 earnings outlook. Boeing reported a 50% earnings slide that badly missed estimates and a revenue slide of 20% or less than expected, but also upheld its forecast for its 737 Max airliner, grounded since March, to return to service later this year. Caterpillar shares rose 1.2%, while Boeing’s stock added 1%.

Technical Indicators

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 26,660.59.

The projected upper bound is: 27,569.70.

The projected lower bound is: 26,120.36.

The projected closing price is: 26,845.03.

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 26 white candles and 24 black candles for a net of 2 white candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 18.9687. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 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 52.83. 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 55 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 33. This is not a topping or bottoming area. The last signal was a buy 10 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 7 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 45.850 at 26,833.949. Volume was 5% below average (neutral) and Bollinger Bands were 25% narrower than normal.

Open     High      Low     Close     Volume___
26,835.24026,896.89126,745.00026,833.949 247,678,880
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 26,837.32 26,567.94 26,106.32
Volatility: 11 18 15
Volume: 241,843,264 251,813,840 279,721,056

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 2.8% above its 200-period moving average and is in an downward trend. Volatility is relatively normal 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 13 periods.

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