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Tuesday, December 7, 2021

Dow Jones Industrial Average (.DJI) sinks on fears over coronavirus spread in US

Dow Jones Industrial Average (.DJI) sinks on fears over coronavirus spread in US

The rollercoaster ride on Wall Street continued on Thursday as all three major stock indexes plunged more than 3 percent.

Investors’ jitters over the spread of the coronavirus returned as the death toll in the United States continued to rise.

The Dow Jones Industrial Average sold off from the start of trading. It continued to tumble on the news that the number of people who have been infected in New York state had doubled.

The Dow at one point shed more than 1,100 points and finished the day at 26,121 … down 969 points.

The tech-heavy Nasdaq and the broader S&P 500 also plunged.

The yen strengthened against the dollar as investors sought the safety of the Japanese currency, sending it to the 105 yen level at one point. Analysts say every time the further spread of the coronavirus infection is reported, investors are automatically forced to sell stocks.

Technical Indicators

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 27,730.70.

The projected upper bound is: 27,398.28.

The projected lower bound is: 24,750.93.

The projected closing price is: 26,074.60.

The projected closing price is: 26,074.60.


A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 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 66.0207. This is not an overbought or oversold reading. The last signal was a buy 3 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 37.55. 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 3 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 -68. 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 9 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed down -969.580 at 26,121.279. Volume was 59% above average (neutral) and Bollinger Bands were 310% wider than normal.

Open     High      Low     Close     Volume___
26,671.92026,671.92025,943.33026,121.279 477,366,304
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 26,800.10 28,510.44 27,251.10
Volatility: 61 31 20
Volume: 557,527,936 331,773,248 278,573,632

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 4.1% below 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 moderate flows of volume out of .DJI (mildly bearish). Our trend forecasting oscillators are currently bearish on .DJI and have had this outlook for the last 8 periods.

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