Dow Jones Industrial Average (.DJI) Scrambles to Salvage Volatile Trading Session
The Dow Jones Industrial Average recovered from a tepid pre-market session to surge more than 100 points shortly after the opening bell, but the index began to slide just minutes later. By early afternoon, it had fallen back into the red, after which it once more began to edge higher. As of 3:20 pm ET, the Dow had gained 74.58 points or 0.29 percent to rise to 25,700.17. Wall Street’s other major indices made small advances as well, with the S&P 500 climbing 0.28 percent to 2,813.28 and the Nasdaq adding 0.28 percent to reach 7,664.86.
TRUMP TWEETSTORM OVERSHADOWS ‘UNPRECEDENTED’ TRADE DEAL PROGRESS
One would expect that Wall Street would be mashing the buy button this morning following a blockbuster report that US and Chinese negotiators had made massive progress toward overcoming crucial hurdles that have prevented the two economic superpowers from sealing the deal on a new trade agreement.
According to Reuters, China made “unprecedented proposals” on several issues, most notably the thorny issue of intellectual property.
“If you looked at the texts a month ago compared to today, we have moved forward in all areas. We aren’t yet where we want to be,” one anonymous senior US administration official said. “They’re talking about forced technology transfer in a way that they’ve never wanted to talk about before – both in terms of scope and specifics.”
Instead, index prices are hovering around their previous-day closes, suggesting that other factors are spooking traders heading into the week’s penultimate trading session.
That may be because Wall Street is grappling with a newly-emboldened Donald Trump who on Thursday unleashed a savage shotgun-blast of tweets aimed at a cavalcade of his political enemies, both foreign and domestic.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 26,279.85.
The projected lower bound is: 25,221.15.
The projected closing price is: 25,750.50.
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 30 white candles and 20 black candles for a net of 10 white candles.
A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 49.6622. This is not an overbought or oversold reading. The last signal was a sell 6 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 52.65. 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 sell 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 -14. This is not a topping or bottoming area. The last signal was a buy 12 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 20 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERG closed up 91.871 at 25,717.461. Volume was 31% below average (neutral) and Bollinger Bands were 68% narrower 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: 25,737.85 25,428.56 25,187.94
Volatility: 14 13 20
Volume: 342,182,432 313,353,376 320,722,688
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 2.1% 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 14 periods.
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