Dow Jones Industrial Average (.DJI) Reverses Sharply Off Lows As Bulls Defend Stock Market Rally

Dow Jones Industrial Average (.DJI) Reverses Sharply Off Lows As Bulls Defend Stock Market Rally

Dow Jones Industrial Average (.DJI) Reverses Sharply Off Lows As Bulls Defend Stock Market Rally

The stock market turned higher Thursday morning after a big intraday decline after Wednesday’s sharp sell-off. The Dow Jones industrials lost about 300 points at their lows in today’s stock market after a weaker-than-expected ISM nonmanufacturing reading, stoking recession fears. But the major indexes roared back as the Dow Jones and Nasdaq composite found support at their 200-day moving averages.

Fears of slowing growth have weighed on the market this week. On Friday, the Labor Department’s payroll numbers will be released.

Among the Dow Jones stocks, McDonald’s (MCD) and Merck (MRK) were early winners, while Caterpillar (CAT) was a top loser. Meanwhile, Apple (AAPL) remains below a recent buy point after Wednesday’s sell-off.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 26,995.92.

The projected lower bound is: 25,363.40.

The projected closing price is: 26,179.66.

Candlesticks

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 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 20.0395. This is not an overbought or oversold reading. The last signal was a buy 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 39.35. 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 41 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 -234.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 13 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 8 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 122.420 at 26,201.039. Volume was 6% below average (neutral) and Bollinger Bands were 25% narrower than normal.

Open     High      Low     Close     Volume___
26,039.02026,205.19925,743.46126,201.039 249,021,904
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 26,714.44 26,515.10 25,853.09
Volatility: 14 20 18
Volume: 278,304,256 271,884,672 293,088,384

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 1.3% 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 19 periods.

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