Dow Jones Industrial Average (.DJI) Rallies Despite Extended Lockdown Measures

Dow Jones Industrial Average (.DJI) Rallies Despite Extended Lockdown Measures

Dow Jones Industrial Average (.DJI) Rallies Despite Extended Lockdown Measures

The Dow kicked off the week with an almost 700-point surge, roaring to its session highs in the last minute of trading. Measures to combat the coronavirus are in focus today, after President Donald Trump extended social distancing measures in the U.S. until April 30, and Johnson & Johnson (JNJ) announced an encouraging COVID-19 vaccine update.

The S&P 500 and Nasdaq both finished comfortably in the black as well, with the tech sector powering the latter. All three indexes closed with wins of 3% or more, while Wall Street’s “fear gauge,” the Cboe Volatility Index (VIX), logged its lowest close in over two weeks.

Technical Indicators

Overall, the bias in prices is: Downwards.

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

By the way, prices are vulnerable to a correction towards 25,704.13.

The projected upper bound is: 25,080.83.

The projected lower bound is: 19,295.32.

The projected closing price is: 22,188.08.

Candlesticks

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 22 white candles and 28 black candles for a net of 6 black 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 89.1640. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 4 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 46.39. 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 4 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 59. This is not a topping or bottoming area. The last signal was a buy 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 2 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 690.701 at 22,327.480. Volume was 39% above average (neutral) and Bollinger Bands were 227% wider than normal.

Open     High      Low     Close     Volume___
21,678.22122,378.09021,522.08022,327.480 546,850,112
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 20,741.13 26,139.40 26,928.43
Volatility: 100 81 43
Volume: 760,294,720 508,582,496 320,014,944

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 17.1% below its 200-period moving average and is in an downward 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 bearish on .DJI and have had this outlook for the last 25 periods.

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