Dow Jones Industrial Average (.DJI) market rally is on the cusp of a record high
Dow Jones futures rose slightly Sunday night, along with S&P 500 futures and Nasdaq futures. The stock market rally is on the cusp of a record high, led by the S&P 500. Apple (AAPL) is at new highs, with one last test to confirm Apple stock as a long-term winner again. Microsoft stock and Amazon stock will react to the Pentagon awarding a $10 billion JEDI cloud-computing contract to Microsoft (MSFT) over Amazon.com (AMZN).
Apple earnings are on tap Wednesday night while the Apple TV+ streaming service launches Friday. On Monday night, Google-parent Alphabet (GOOGL) reports. Google earnings headline a thin slate of Monday reports, along with Beyond Meat (BYND) and Akamai Technologies (AKAM).
Apple stock, Microsoft stock, Google stock and Amazon stock are the four biggest companies by market cap.
France’s LVMH (LVMUY) has offered $14.5 billion for U.S. jeweller Tiffany (TIF). The Louis Vuitton parent is offering $120 a share for Tiffany stock, a 22% premium. Tiffany may reject the LVMH bid. Tiffany stock in 2019 has risen, largely in line with the S&P 500 index, after tumbling in late 2018.
Dow Jones Futures Today
Dow Jones futures rose 0.2% vs. fair value, with Microsoft stock perhaps boosting blue chips. S&P 500 futures climbed 0.1% and Nasdaq 100 futures 0.25%.
Overnight action in Dow futures doesn’t always translate into the next stock market session. During earnings season, Dow Jones futures can swing as results come in, followed by investors taking a different view during regular trading.
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 26,665.28.
The projected upper bound is: 27,623.29.
The projected lower bound is: 26,347.98.
The projected closing price is: 26,985.63.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.
An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend. It then signifies that the momentum may be shifting from the bears to the bulls.
If the engulfing bullish pattern occurs during an uptrend (which appears to be the case with DJ INDU AVERG), it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.
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 43.6025. This is not an overbought or oversold reading. The last signal was a buy 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 55.81. 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 57 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 53. This is not a topping or bottoming area. The last signal was a buy 12 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 9 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERG closed up 152.531 at 26,958.061. Volume was 5% above average (neutral) and Bollinger Bands were 23% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 26,882.35 26,622.04 26,135.74
Volatility: 9 15 15
Volume: 245,147,552 248,642,912 279,078,752
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 3.1% 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 15 periods.
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