Dow Jones Industrial Average (.DJI) rallying strongly as Donald Trump and China prime markets for a possible trade deal

Dow Jones Industrial Average (.DJI) rallying strongly as Donald Trump and China prime markets for a possible trade deal

Dow Jones Industrial Average (.DJI) rallying strongly as Donald Trump and China prime markets for a possible trade deal

The stock market bounced aggressively on the news that Trump and Chinese Vice Premier Liu He will meet tomorrow in the White House as the “surprise” teased by Larry Kudlow comes to fruition. Additionally, a soft US CPI number gave Dow bulls confidence that the Fed will be able to continue to cut rates aggressively.

Turkish aggression in Syria and the arrest of two Giuliani allies by Trump’s own administration over illegal campaign finance tactics in Ukraine are lurking tail risks so far being ignored by markets.

Dow Jones Rises as Trump Prepares to Meet with China’s Liu

There was remarkable uniformity across the board in the major US indices, as the S&P 500, Nasdaq, and Dow Jones Industrial Average extended their previous-day advances. The Dow last traded at 26,458.86 for a gain of 112.85 points or 0.43%.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 27,326.32.

The projected lower bound is: 25,652.31.

The projected closing price is: 26,489.32.

Candlesticks

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 26 white candles and 24 black candles for a net of 2 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 58.9541. This is not an overbought or oversold reading. The last signal was a buy 5 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 48.04. 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 46 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 -31. This is not a topping or bottoming area. The last signal was a buy 1 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 sell 13 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 150.660 at 26,496.670. Volume was 16% below average (neutral) and Bollinger Bands were 11% narrower than normal.

Open     High      Low     Close     Volume___
26,317.35026,603.31126,314.51026,496.670 217,677,376
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 26,464.82 26,443.93 25,942.90
Volatility: 19 20 17
Volume: 236,303,440 264,965,920 285,016,320

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 2.1% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 4 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH