Dow Jones Industrial Average (.DJI) regained some of its bullish form
U.S. stocks closed higher Tuesday as the market regained some of its bullish form, a day after a sharp escalation in U.S.-China trade tensions triggered the worst session for major indexes since early January.
The start of the week was marked by a ramp-up in trade tensions after China fired back at U.S. tariffs with retaliatory duties that could reach 25% on $60 billion in annual U.S. exports. That was after the U.S. last week raised tariffs on $200 billion in annual Chinese imports to 25% from 10%, and threatened more following talks that ended Friday without a deal between the two countries.
Investors are worried that an escalating fight between the two could harm the U.S., Chinese and global economies.
But some calm appeared to have been restored after President Donald Trump said late Monday that it should be clear in “three or four weeks” if a U.S. delegation’s recent trip to China to discuss trade was successful. “I have a feeling it’s going to be very successful,” he added.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 26,063.58.
The projected lower bound is: 24,989.02.
The projected closing price is: 25,526.30.
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 25 white candles and 25 black candles.
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 29.9193. This is not an overbought or oversold reading. The last signal was a sell 14 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 36.15. This is not a topping or bottoming area. However, the RSI just crossed above 30 from a bottoming formation. This is a bullish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 0 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 -118.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 7 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 207.061 at 25,532.051. Volume was 4% below average (neutral) and Bollinger Bands were 3% wider 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: 26,024.15 26,060.07 25,422.52
Volatility: 19 13 20
Volume: 301,690,912 298,371,808 318,513,888
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 0.4% 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.
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