Dow Jones Industrial Average (.DJI) Prepares For Busy Week

Dow Jones Industrial Average (.DJI) Prepares For Busy Week

$DJI #DowJones #Markets #Trading

Last week the NASDAQ blew the doors off its counterparts with a jump of 4%, but this week it was the only major index to finish in the red.

The Dow had the best performance over the past five days by advancing 2.3%, thanks to vaccine hopes and the beginning of earnings season taking attention away from the pandemic. Meanwhile, the S&P rose 1.2% this week.

These indices now have three-week winning streaks.

Then there’s the NASDAQ, which was down over 1% in these five days after back-to-back winning weeks.

After leading the market higher for months during almost any type of sentiment, tech has been out of favor lately. Investors had been concerned for a while that the space was just too hot for its own good.

And it didn’t help that Netflix (NFLX) reported disappointing results last night, including an earnings miss and a soft outlook for third-quarter subscriber growth. The streaming giant was down 6.5% today.

Friday’s session turned out to be rather dull compared to the week as a whole, which you probably remember began with an epic late-day plunge on Monday that spoiled solid morning gains. But today stocks didn’t move much at all.

The S&P rose 0.28% to 3224.73, while the NASDAQ advanced by the same percentage (or nearly 30 points) to 10503.19. The Dow finished in the red, but only by 0.23% (or about 62 points) to 26,671.95.

Earnings season will get a whole lot busier this week. Usually those reports would be the market’s main focus, but who knows what kind of vaccine or virus news we will get? And will tech bounce back?

Price Performance

Top Movers

Bottom Movers

Technical Analysis

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 28,110.89.

The projected lower bound is: 25,353.30.

The projected closing price is: 26,732.10.

Candlesticks

A black body occurred (because prices closed lower than they opened).
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.

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 76.9041. 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 58.33. 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 26 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 110.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 13 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 4 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed down -62.762 at 26,671.949. Volume was 38% below average (neutral) and Bollinger Bands were 59% narrower than normal.

Open        High        Low         Close        Volume
26,774.619  26,808.430  26,619.881  26,671.949   300,520,800
Technical Outlook
Short Term:        Overbought
Intermediate Term: Bearish
Long Term:         Bullish
Moving Averages: 10-period      50-period       200-period
Close:           26,303.10      25,567.25       26,223.78
Volatility:      23             34              48
Volume:          356,783,808    411,862,880     382,432,928

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 1.7% above its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future.

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 13 periods.

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