Dow Jones Industrial Average (.DJI) market extended losses
The stock market extended losses late Thursday morning. The Dow Jones industrials fell 100 points. Dow Jones stock UnitedHealth (UNH) was lower after this morning’s earnings report, while Microsoft (MSFT) will report after the stock market close. Meanwhile, Netflix (NFLX) plummeted more than 10% on weak earnings results. Check out today’s IBD Investing Action Plan for important stock market events, like earnings results from recent IPO stocks CrowdStrike (CRWD) and Chewy (CHWY).
Current Stock Market Rally
The tech-heavy Nasdaq composite took a hard early hit from Netflix’s stock plunge, trading down 0.5%. The S&P 500 fell 0.2%, while the Dow Jones Industrial Average lost 0.4%. Year to date, the Nasdaq is up about 24%. The S&P 500 has gained about 20%, while the Dow Jones has moved up about 18%.
The major indexes are set to extend their losing streak to three trading sessions. All three major stock indexes reached record highs Monday. The Dow Jones industrials topped the 27,000 price level for the first time last week.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 26,439.55.
The projected upper bound is: 27,805.77.
The projected lower bound is: 26,690.49.
The projected closing price is: 27,248.13.
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 29 white candles and 21 black candles for a net of 8 white candles.
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 70.1258. This is not an overbought or oversold reading. The last signal was a sell 0 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 68.07. 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 sell 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 62. This is not a topping or bottoming area. The last signal was a sell 1 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 5 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERG closed up 3.121 at 27,222.971. Volume was 22% below average (neutral) and Bollinger Bands were 12% narrower 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: 27,092.97 26,186.81 25,505.83
Volatility: 8 14 20
Volume: 217,479,376 265,587,152 317,751,936
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 6.7% above its 200-period moving average and is in an upward 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 bullish on .DJI and have had this outlook for the last 25 periods.