Dow Jones Industrial Average (.DJI) ongoing trade discussions between the Trump administration and its Chinese counterparts

Dow Jones Industrial Average (.DJI) ongoing trade discussions between the Trump administration and its Chinese counterparts

Dow Jones Industrial Average (.DJI) ongoing trade discussions between the Trump administration and its Chinese counterparts

Stocks fell on Thursday following the release of lackluster U.S. economic data and amid ongoing trade discussions between the Trump administration and its Chinese counterparts.

The Dow Jones Industrial Average fell 103.81 points to 25,850.63 as Walgreens Boots Alliance lagged. The S&P 500 dipped 0.35 percent to 2,774.88, led lower by the energy and health care sectors. The Nasdaq Composite fell 0.4 percent to 7,459.71.

Durable goods orders for December rose 1.2 percent, the Commerce Department said. The department also said core capital goods orders fell 0.7 percent while economists polled by Reuters expected a gain of 0.2 percent.

The U.S. and China are trying to resolve their differences over trade ahead of a March 1 deadline. However, speculation has risen that there may be an extension to that target, after President Donald Trump said it was not a “magical date.”

“Tariff news outweighs everything. There was no major news on trade, so the market is trading on what’s out there,” said JJ Kinahan, chief market strategist at TD Ameritrade. “What’s out there today, there’s not that much excitement to it.”

Nike shares fell 1 percent after star Duke University basketball player Zion Williamson broke his shoe at the start of a highly anticipated game. The break led to Williamson hurting his knee.

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 24,815.85.

The projected upper bound is: 26,822.24.

The projected lower bound is: 24,937.49.

The projected closing price is: 25,879.87.

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 32 white candles and 18 black candles for a net of 14 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 89.0356. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 8 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 67.23. This is not a topping or bottoming area. However, the RSI just crossed below 70 from a topping formation. This is a bearish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 0 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 106.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 4 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 34 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed down -103.809 at 25,850.631. Volume was 29% below average (neutral) and Bollinger Bands were 25% narrower than normal.

Open High Low Close Volume___
25,922.41025,938.88125,762.21125,850.631 255,708,688

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

Moving Averages: 10-period 50-period 200-period
Close: 25,531.70 24,317.02 25,064.56
Volatility: 15 26 20
Volume: 279,255,584 352,697,632 322,119,584

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 3.1% 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 moderate flows of volume into .DJI (mildly bullish). Our trend forecasting oscillators are currently bullish on .DJI and have had this outlook for the last 27 periods.

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