Dow Jones Industrial Average (.DJI) rise on hopes for a US-China trade truce

Dow Jones Industrial Average (.DJI) rise on hopes for a US-China trade truce

Dow Jones Industrial Average (.DJI) rise on hopes for a US-China trade truce

Stocks closed higher after a choppy session on Tuesday as comments from President Donald Trump’s top economic advisor sparked some hope the U.S. and China will strike a compromise on trade.

The Dow Jones Industrial Average rose 108.49 points to 24,748.73, while the S&P 500 gained 0.3 percent to end the day at 2,682.20. The Nasdaq Composite just above the flatline at 7,082.70. At its low of the day, the Dow dropped more than 200 points.

The indexes rose after National Economic Council Director Larry Kudlow said the White House was having “a lot of communication with the Chinese government at all levels ” ahead of a meeting between Trump and his Chinese counterpart, Xi Jinping. Kudlow later told reporters Trump thinks there is a “good possibility” the two countries can reach and agreement. Shares of Boeing, considered a trade bellwether for the company’s high exposure to overseas markets, hit its high of the day before closing 0.5 percent higher.

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 25,384.34.

The projected upper bound is: 25,605.07.

The projected lower bound is: 23,839.86.

The projected closing price is: 24,722.46.

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 25 white candles and 25 black 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 30.5090. 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 43.22. 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 22 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 -73. This is not a topping or bottoming area. The last signal was a buy 1 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 6 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERAGE closed up 108.490 at 24,748.730. Volume was 1% above average (neutral) and Bollinger Bands were 50% wider than normal.

Open High Low Close Volume___
24,557.02024,750.73024,416.02924,748.730 308,249,408

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 24,869.22 25,631.89 25,097.98
Volatility: 20 22 18
Volume: 333,500,384 342,104,064 334,842,656

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 AVERAGE is currently 1.4% below its 200-period moving average and is in an downward trend. Volatility is high 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 bearish on .DJI and have had this outlook for the last 5 periods.

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