Dow Jones Industrial Average (.DJI) President Donald Trump and Chinese President Xi Jinping agreement to halt new tariffs and avoid escalating the China trade war
Dow Jones futures soared Sunday night, along with S&P 500 futures and Nasdaq futures following a tariff truce at the Trump-Xi meeting. President Donald Trump and Chinese President Xi Jinping on Saturday agreed to halt new tariffs and avoid escalating the China trade war. The Trump-Xi meeting outcome puts on hold higher Trump tariffs on Chinese goods, including possible duties on the Apple (AAPL) iPhone. A China trade war cease-fire could be good news for Apple stock, Tesla (TSLA), Deere (DE) and U.S.-listed Chinese stocks such as Alibaba (BABA). Chipmakers, perhaps notably Qualcomm (QCOM) and NXP Semiconductors (NXPI), also could benefit.
The positive Trump-Xi meeting comes after dovish comments by Fed Chairman Jerome Powell fueled the best weekly gains of 2018 for the Dow Jones, S&P 500 index and Nasdaq composite. Fed Chairman Powell said late Wednesday that interest rates are “just below” neutral.
Dow Jones Futures Today
Dow Jones futures jumped 1.9% vs. fair value. S&P 500 futures raced 1.75% higher. Nasdaq 100 futures ran up 2.25%. Remember that Dow futures and other overnight action don’t necessarily translate in actual trading in the next regular stock market session.
Crude oil futures jumped about 5% as Saudi Arabia and Russia agreed to extend their pact to manage crude prices. Traders expect a production cut by OPEC and Russia at a key meeting this week.
On Monday, the New York Stock Exchange will hold a minute of silence for former President George H.W. Bush. On Wednesday, the NYSE and Nasdaq stock markets will close for Bush’s funeral. Bond markets also will close. Traditionally U.S. stock markets close for the funerals of former presidents.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 25,384.72.
The projected upper bound is: 26,429.67.
The projected lower bound is: 24,602.51.
The projected closing price is: 25,516.09.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black 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 AVERAGE), 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 95.5965. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 3 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 54.86. 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 25 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 80. This is not a topping or bottoming area. The last signal was a buy 4 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 1 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERAGE closed up 199.621 at 25,538.461. Volume was 56% above average (neutral) and Bollinger Bands were 47% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 24,927.96 25,570.57 25,105.53
Volatility: 25 23 18
Volume: 336,782,784 349,998,240 334,478,464
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 AVERAGE is currently 1.7% above its 200-period moving average and is in an upward trend. Volatility is high 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 1 periods.