Dow Jones Industrial Average (.DJI) slightly lower as the Fed kicked off its two-day monetary policy meeting

Dow Jones Industrial Average (.DJI) slightly lower as the Fed kicked off its two-day monetary policy meeting

Dow Jones Industrial Average (.DJI) slightly lower as the Fed kicked off its two-day monetary policy meeting

The Dow Jones Industrial Average was slightly lower in the stock market today as the Fed kicked off its two-day monetary policy meeting and oil prices plunged.

The Nasdaq composite held a 0.1% gain, the S&P 500 was fractionally higher and the Dow Jones industrials edged 0.1% lower. Small caps tracked by the Russell 2000 lagged for a change, down 0.6%. Volume was tracking lighter on the NYSE and Nasdaq vs. the same time Monday.

The market is waiting to find out whether the Federal Reserve will keep interest rates steady or lower rates by a quarter point. With about one hour left to go in Tuesday’s session, the market saw a 50% chance of a quarter-point cut to a range of 1.75% to 2%

Dow Jones Movers

Losers beat winners by a slight margin in the Dow Jones index. Four blue chips fell more than 1% each: Pfizer (PFE), Walgreens Boots Alliance (WBA), Dow (DOW) and Cisco Systems (CSCO). Three gained more than 1% each: McDonald’s (MCD), Boeing (BA) and Procter & Gamble (PG).

Technical Indicators

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 26,600.00.

The projected upper bound is: 27,901.84.

The projected lower bound is: 26,331.95.

The projected closing price is: 27,116.89.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 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 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 67.9465. This is not an overbought or oversold reading. The last signal was a sell 1 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 60.91. 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 29 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 sell 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 buy 18 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 33.980 at 27,110.801. Volume was 16% below average (neutral) and Bollinger Bands were 28% wider than normal.

Open     High      Low     Close     Volume___
27,010.11927,110.80126,984.14127,110.801 223,580,608
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 26,935.27 26,610.31 25,729.55
Volatility: 10 19 19
Volume: 249,124,496 263,230,752 300,653,120

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 is currently 5.4% 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 7 periods.

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