Dow Jones Industrial Average (.DJI) Rebounds As Wild Action Continues
The Dow Jones Industrial Average and other major indexes scored solid gains in the stock market today to extend their recent volatile action ahead of U.S.-China trade talks Thursday.
The Nasdaq rallied 1%, the S&P 500 rose 0.9% and the Dow Jones industrials gained 0.7%. Small caps tracked by the Russell 2000 advanced 0.8%. Volume was lower on both exchanges vs. Tuesday, according to preliminary data.
The Dow Jones index, up as much as 260 points, settled for a 182-point gain. Stocks rose early amid reports that China is willing to negotiate at least a partial deal. On Tuesday, the Dow tumbled 314 points after the U.S. imposed visa bans on certain Chinese officials.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 27,174.20.
The projected lower bound is: 25,483.74.
The projected closing price is: 26,328.97.
A white body occurred (because prices closed higher than they opened).
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 25 white candles and 25 black candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 56.2008. This is not an overbought or oversold reading. 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 44.84. 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 45 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 -68. This is not a topping or bottoming area. The last signal was a buy 0 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 sell 12 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERG closed up 181.971 at 26,346.010. Volume was 27% below average (neutral) and Bollinger Bands were 9% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 26,504.27 26,451.28 25,919.38
Volatility: 18 21 18
Volume: 237,615,488 268,392,352 285,470,048
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 AVERG is currently 1.6% 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 3 periods.