Dow Jones Industrial Average (.DJI) rises sharply getting a boost from a surge in shares of Apple and Boeing.

Dow Jones Industrial Average (.DJI) rises sharply getting a boost from a surge in shares of Apple and Boeing.

Dow Jones Industrial Average (.DJI) rises sharply getting a boost from a surge in shares of Apple and Boeing.

The Federal Reserve announced Wednesday afternoon that it was keeping interest rates at current levels while also signaling that the central bank is willing to adjust its balance sheet normalization amid pressure from the White House to slow down the unwinding of its balance sheet. 

The move sent the major indices, which were already performing well, even higher Wednesday. 

Stocks jumped on Wednesday, Jan. 30, as Apple Inc. and Boeing Co. topped quarterly earnings forecasts, sending waves of relief through world markets rattled by persistent concerns from U.S. companies over slowing growth in China.

Boeing obliterated Wall Street’s fourth-quarter earnings estimates by more than $1 a share, posting a bottom line of $5.48 a share on revenue of $28.34 billion. Boeing rose 6.25% on Wednesday.

Looking into 2019, Boeing said it sees record commercial airplane deliveries of between 895 and 905 aircraft, while revenue likely will hit a range of $109.5 billion to $111.5 billion, well ahead of the consensus forecast of $106 billion. With margins improving to at least 10.5%, Boeing hinted, earnings should come within a range of $19.90 to $20.10 a share, firmly ahead of Refinitiv’s 2019 forecast of $18.30.And with Apple guiding to a relatively strong March quarter — traditionally its weakest of the four — and CEO Tim Cook commenting that U.S.-China trade tensions appeared to be cooling ahead of a key two-day summit in Washington, investors may have cleared a major earnings season hurdle as they await an interest rate decision Wednesday from the Federal Reserve and the release Friday of the U.S. jobs report (on Wednesday, ADP said U.S. companies added 213,000 jobs to private payrolls in January, topping economists’ estimates). The Dow Jones Industrial Average rose 435 points, or 1.77%, to 25,015, the S&P 500 was up 2.2, and the Nasdaq rose 1.55%.

China’s vice premier, Liu He, arrives in Washington on Wednesday for a two-day summit on trade that could unlock months of disagreement over issues such as intellectual property protection and forced technology transfers that have stalled negotiations for several months.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 26,106.15.

The projected lower bound is: 23,920.94.

The projected closing price is: 25,013.55.

Candlesticks

A white body occurred (because prices closed higher 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 29 white candles and 21 black candles for a net of 8 white candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 5 rising windows in the last 50 candles–this makes the current rising window even more bullish.

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 63.8333. This is not an overbought or oversold reading. The last signal was a sell 5 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 62.93. 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 23 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 143.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 2 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 19 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 434.898 at 25,014.859. Volume was 10% above average (neutral) and Bollinger Bands were 1% wider than normal.

Open High Low Close Volume___
24,826.52025,109.61924,790.90025,014.859 397,331,648

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 24,567.72 24,183.77 24,981.48
Volatility: 17 29 20
Volume: 339,390,112 370,879,648 328,518,944

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 gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
DJ INDU AVERG is currently 0.1% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume into .DJI (mildly bullish). Our trend forecasting oscillators are currently bullish on .DJI and have had this outlook for the last 12 periods.

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