Dow Jones Industrial Average (.DJI) retreats from record as Home Depot shares slump

Dow Jones Industrial Average (.DJI) retreats from record as Home Depot shares slump

Dow Jones Industrial Average (.DJI) retreats from record as Home Depot shares slump

The Dow’s two-day streak of records ended on Tuesday (Nov 19) following a big drop in Home Depot shares over a disappointing sales forecast.

Home Depot plunged more than 5 per cent as it slashed its full-year sales forecast, saying the payoff from investments in e-commerce and other ventures was taking longer than expected.

Despite that disappointment, analysts took heart in other aspects of the Home Depot report, including a 3.6 per cent increase in comparable sales.

They also cited better-than-expected US home construction data.

Art Hogan of National Holdings said it was “one of those days where’s a balance between good and bad.”

The Dow Jones Industrial Average fell 0.4 per cent to end at 27,933.98, while the S&P 500 retreated from a record, shedding 0.1 per cent to close at 3,120.18.

But results Tuesday from retailers were mixed. Besides Home Depot, Kohl’s slumped 19.5 per cent, while discount chain TJX gained 2.7 per cent.

More retailers are set to report in the coming days, including Target, Lowe’s, Nordstrom and Gap.

Boeing shed 0.6 per cent after the National Transportation Safety Board issued new safety recommendations on the Boeing 737 NG following the emergency landing of a Southwest plane in April 2018.

Boeing said it was working on enhancements, but that all the 737 NG planes are safe to fly.

Earlier, the company said it won an order from an unnamed airline for 20 of the 737 Max planes for US$2.3 billion (S$3.1 billion).

AT&& dropped 4.1 per cent following a downgrade from MoffettNathanson.

Technical Indicators

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 27,287.70.

The projected upper bound is: 28,322.49.

The projected lower bound is: 27,347.05.

The projected closing price is: 27,834.77.

Candlesticks

A black body occurred (because prices closed lower 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 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 68.6478. This is not an overbought or oversold reading. The last signal was a sell 0 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 64.93. This is not a topping or bottoming area. However, the RSI just crossed below 70 from a topping formation. This is a bearish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 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 47. This is not a topping or bottoming area. The last signal was a sell 0 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 27 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed down -112.930 at 27,821.090. Volume was 0% below average (neutral) and Bollinger Bands were 1% wider than normal.

Open     High      Low     Close     Volume___
27,879.55127,897.27927,675.27927,821.090 260,236,032
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 27,810.08 27,079.30 26,398.42
Volatility: 7 12 15
Volume: 254,509,408 253,552,352 272,735,744

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 5.4% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. 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 14 periods.

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