Dow Jones Industrial Average (.DJI) Rallies towards record highs

Dow Jones Industrial Average (.DJI) Rallies towards record highs

Dow Jones Industrial Average (.DJI) Rallies towards record highs

Just ahead of the closing bell, the Dow Jones Industrial Average had raced to a 123.91 point or 0.47 percent increase, launching the index to 26,634.96. In just five months, the DJIA has surged by a breathtaking 22 percent.

The move came as President Trump took a victory lap at the expense of Nobel laureate and frequent critic Paul Krugman.

Speaking to CNBC in early April, Krugman said that China and Europe may already be in a recession and the bond market is indicating a lack of confidence in the U.S. economy.

With all three major stock market indices at or near record highs, Trump unloaded on Krugman and the “Fake News New York Times,” in whose pages the economist often bashes the president.

President Trump said:

“Paul Krugman, of the Fake News New York Times, has lost all credibility, as has the Times itself, with his false and highly inaccurate writings on me. He is obsessed with hatred, just as others are obsessed with how stupid he is. He said Market would crash, Only Record Highs!”

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 25,671.17.

The projected upper bound is: 27,160.38.

The projected lower bound is: 26,214.40.

The projected closing price is: 26,687.39.

Candlesticks

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.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 80.3104. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 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 67.68. 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 39 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 140.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 3 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 15 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 145.340 at 26,656.391. Volume was 4% below average (neutral) and Bollinger Bands were 37% narrower than normal.

Open High Low Close Volume___
26,513.83026,695.96126,503.56126,656.391 311,690,688

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

Moving Averages: 10-period 50-period 200-period
Close: 26,387.70 25,939.65 25,335.22
Volatility: 9 12 20
Volume: 282,697,024 292,638,208 314,796,032

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 5.2% above its 200-period moving average and is in an upward 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 bullish on .DJI and have had this outlook for the last 13 periods.

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