Dow Jones Industrial Average (.DJI) sinks 105 points as health-care selling and worries about China’s economy weigh on market
U.S. stocks ended solidly lower Monday as buying appetite abated, following economic reports that pointed to weakness in China’s economy, highlighting worries about a global economic recession. Health-care shares, meanwhile, also weighed on the broader market, with that category declining 0.7%.
The Dow Jones Industrial Average DJIA, -0.38% declined by 105 points, or 0.4%, at 27,910, the S&P 500 index SPX, -0.32% slipped 0.3% to 3,135, while the Nasdaq Composite Index COMP, -0.40% retreated 0.4% to 8,622. All closing levels are on a preliminary basis.
On Friday, stocks soared after a better-than-expected jobs report sparked a rally. Equity benchmarks on Monday, however, finished near their lows of the session ahead of the Dec. 15 deadline for 15% import duties on $156 billion of annual consumer imports to take effect.
Data out of Beijing showed that China’s exports unexpectedly dropped 1.1% in November from a year earlier, while shipments to the U.S. fell 23%, reflecting the weight of the U.S.-China trade clash. Investors will watch for the start of the Federal Reserve’s two-day policy meeting, which kicks off Tuesday, with no expectation that the central bank will make changes to interest rates but hope that that officials may offer guidance on future policy.
In corporate news, Shares of Chevron Corp. CVX, -0.60% fell 0.6% after Citi analyst Alastair Syme downgraded the stock to neutral from buy.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 28,461.45.
The projected lower bound is: 27,401.32.
The projected closing price is: 27,931.39.
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 28 white candles and 22 black candles for a net of 6 white candles.
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 71.0565. 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 56.47. 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 6 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 28. This is not a topping or bottoming area. The last signal was a buy 2 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 11 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERG closed down -105.461 at 27,909.600. Volume was 14% below average (neutral) and Bollinger Bands were 51% 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: 27,894.16 27,286.84 26,534.14
Volatility: 13 13 15
Volume: 229,310,992 246,345,520 269,684,704
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 5.2% 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 2 periods.
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