Dow Jones Industrial Average (.DJI) losing steam

Dow Jones Industrial Average (.DJI) losing steam

Dow Jones Industrial Average (.DJI) losing steam

The Dow closed virtually flat on Wednesday, shrugging off the optimism about a US-China trade deal that propelled stocks higher earlier in the day.

The Dow (INDU) finished in negative territory, down 12 points. The S&P 500 (SPX) also gave back its gains and closed 0.1% lower. The Nasdaq Composite (COMP) was the outlier and closed 0.3% higher.

With only three trading days left in June, the Dow, S&P and Nasdaq are on track for their best month since January. The Dow climbed 2.4% so far in the second quarter, while the S&P and the Nasdaq are up 2.8% and 2.3%.

Stocks spent much of Wednesday in the green. The upswing followed a weaker market performance on Tuesday, though it proved to only be temporary. Comments made by Treasury Secretary Steven Mnuchin, who said a trade deal with China was close to done, gave the market a boost earlier.

The United States knows that China won’t strike a deal at any price, Leering added. The breakdown of talks in May also changed expectations for the market, and resuming talks may not be enough to keep sentiment going for long.Leering expects a deal to be agreed in the fourth quarter.

Just like stocks, oil prices are also being supported by optimism for the G20 summit, as well as the hopes that OPEC will extend production cuts. Adding to the bullish sentiment, US crude inventories fell by 12.8 million barrels last week, according to a report released Wednesday by the Energy Information Administration. US oil prices settled 2.7% higher at $59.38 a barrel, according to CME.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 27,129.82.

The projected lower bound is: 25,949.91.

The projected closing price is: 26,539.86.

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 27 white candles and 23 black candles for a net of 4 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 41.3827. This is not an overbought or oversold reading. The last signal was a sell 1 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 62.09. 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 16 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 57. This is not a topping or bottoming area. The last signal was a sell 1 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 14 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed down -11.400 at 26,536.820. Volume was 5% below average (neutral) and Bollinger Bands were 87% wider than normal.

Open High Low Close Volume___
26,599.42026,660.03926,536.33026,536.820 274,338,528

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

Moving Averages: 10-period     50-period     200-period
Close: 26,456.33 26,036.79 25,456.11
Volatility: 10 15 20
Volume: 268,796,832 284,531,008 320,749,088

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 4.2% above its 200-period moving average and is in an upward trend. Volatility is low 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 10 periods.

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