Dow Jones Industrial Average (.DJI) made a sudden recovery after the Trump administration schemed to salvage the embattled U.S.-China trade deal

Dow Jones Industrial Average (.DJI) made a sudden recovery after the Trump administration schemed to salvage the embattled U.S.-China trade deal

Dow Jones Industrial Average (.DJI) made a sudden recovery after the Trump administration schemed to salvage the embattled U.S.-China trade deal

The Dow and broader U.S. stock market erased early losses Wednesday amid reports that the Trump administration was planning to send an envoy to Beijing to resume high-stakes trade negotiations.

DOW MAKES SURPRISE RECOVERY; S&P 500, NASDAQ FOLLOW

All of Wall Street’s major indexes turned positive in afternoon trading, erasing a volatile pre-market for Dow futures. The Dow Jones Industrial Average gained 180 points, or 0.7%, to 25,172.97. The blue-chip index was down by as much as 91 points earlier in the day.

The United States and China will likely resume trade negotiations soon, according to Treasury Secretary Stephen Mnuchin.

Testifying before a Senate Appropriations subcommittee Wednesday, Mnuchin said the White House will likely send a trade envoy to Beijing to restart negotiations. The news comes less than a day after President Trump’s top trade adviser said talks with China have reached “a complete stalemate.”

The world’s two biggest economies locked horns this week after China announced retaliatory tariffs on $60 billion of additional U.S. imports. The United States responded by preparing a list of additional tariffs targeting $300 billion worth of Chinese goods.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 26,184.54.

The projected lower bound is: 25,105.15.

The projected closing price is: 25,644.85.

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 26 white candles and 24 black candles for a net of 2 white 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 30.4913. This is not an overbought or oversold reading. The last signal was a sell 15 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 39.51. 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 1 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 -93. This is not a topping or bottoming area. The last signal was a buy 0 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 13 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 115.969 at 25,648.020. Volume was 11% below average (neutral) and Bollinger Bands were 10% wider than normal.

Open High Low Close Volume___
25,400.13125,724.89125,341.93925,648.020 270,716,256

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

Moving Averages: 10-period 50-period 200-period
Close: 25,945.94 26,056.90 25,423.51
Volatility: 19 13 20
Volume: 298,377,824 298,740,864 318,219,072

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 0.9% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 5 periods.

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