Dow Jones Industrial Average (.DJI) rebound ended a five-day losing streak

Dow Jones Industrial Average (.DJI) rebound ended a five-day losing streak

Dow Jones Industrial Average (.DJI) rebound ended a five-day losing streak

Stocks closed broadly higher on Wall Street Tuesday, reversing a big slice of the market’s losses from a sharp sell-off the day before.

The rebound ended a five-day losing streak for the Dow Jones Industrial Average fueled largely by fears that the spread of a new virus in China could hamper global economic growth. The outbreak has killed more than 100 people, putting a chill on travel and tourism in China.

Investors placed their concerns about the virus’ potential economic impact on the back burner and snapped up stocks beaten down earlier in the week, particularly chipmakers and other technology companies. The sector notched the biggest gain Tuesday and powered much of the rally.

The United States and several other nations were taking steps to airlift citizens out of a Chinese city at the center of the outbreak. Still, U.S. health officials said Tuesday that, for now, the risks to Americans is very low.

Apple was one of the big gainers in the technology sector Tuesday. The iPhone maker rose 2.8% and continued to climb in extended trading after it released quarterly results following the closing bell that topped analysts’ estimates.

Chipmakers also made solid gains. Intel added 2.5% and Nvidia rose 3.2%. Many of those companies are affected by China’s economy because they rely heavily on that nation for sales and supply chains.

Banks and other financial companies also climbed, along with communications stocks. Utilities, real estate companies and household goods makers notched the smallest gains as investors shifted less money into safe-play sectors.

Shares in casino operators, hotel chains, cruise lines and other travel-related companies recouped some of their losses over the past few days as worries about the virus outbreak’s impact on tourism hammered the stocks. Wynn Resorts rose 0.9% and Las Vegas Sands gained 1.8%. Delta Air Lines added 1.1% and Carnival gained 2.7%.

Investors continued to assess company earnings reports. Pfizer slid 5% after the biggest U.S. drugmaker reported disappointing fourth-quarter earnings.

Harley-Davidson dropped 3% after the storied motorcycle maker reported weak fourth-quarter earnings and revenue. The company had a tough quarter for U.S. sales, which led the overall worldwide drop.

Wall Street is in the midst of a heavy week for corporate earnings. Boeing, McDonald’s, Facebook and Microsoft will all report results on Wednesday. Other big names reporting this week include Coca-Cola, Amazon, Caterpillar and Exxon Mobil.

The Federal Reserve is also set to deliver its latest interest rate and economic policy update Wednesday. The central bank lowered its key interest rate three times last year in a bid to shield the economy from slowing global growth and the fallout from the U.S.-China trade war.

Benchmark crude oil rose 34 cents settle at $53.48 a barrel. Brent crude oil, the international standard, gained 19 cents to close at $59.51 a barrel. Wholesale gasoline rose 2 cents to $1.50 per gallon. Heating oil climbed 2 cents to $1.72 per gallon. Natural gas rose 3 cents to $1.93 per 1,000 cubic feet.

Technical Indicators

Overall, the bias in prices is: Upwards.

The projected upper bound is: 29,211.73.

The projected lower bound is: 28,271.54.

The projected closing price is: 28,741.63.

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 31 white candles and 19 black candles for a net of 12 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 22.6819. This is not an overbought or oversold reading. The last signal was a sell 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 49.54. 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 5 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 -100.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 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 sell 2 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 187.049 at 28,722.850. Volume was 37% above average (neutral) and Bollinger Bands were 9% narrower than normal.

Open     High      Low     Close     Volume___
28,594.27928,823.23028,575.75028,722.850 352,936,384
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 29,040.64 28,395.21 26,990.18
Volatility: 13 11 14
Volume: 312,980,288 261,746,400 266,322,992

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 6.4% above its 200-period moving average and is in an upward 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 bullish on .DJI and have had this outlook for the last 31 periods.

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