Dow Jones Industrial Average (.DJI) smashes new records
The Dow Jones Industrial Average is on its best winning streak since 1995.
The blue-chip index ended the week slightly higher, completing its ninth straight positive week in a row as stocks extended a months-long rally through February.
The market’s win streak put an end to an ugly Christmas sell-off. After hitting a 52-week low on Dec. 26, the Dow has roared nearly 20 percent higher, and is now less than 4 percent from its record set in October.
The RSI, or relative strength index, has moved above 70 – a level that typically indicates overbought conditions. It plummeted to roughly 20 in December, suggesting the index was oversold.
Acampora says a drop down to the 200-day moving average at around 25,000 is possible, but that level then provides a “cushion under the market” and lends support against any further downside. A decline to 25,000 marks a 4 percent downturn from Friday’s close.
There is a silver lining, though, according to Acampora. Another technical indicator, the moving average convergence divergence indicator or MACD, on the longer-term chart is flashing a bullish signal.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 24,875.66.
The projected upper bound is: 27,008.52.
The projected lower bound is: 25,119.45.
The projected closing price is: 26,063.98.
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 32 white candles and 18 black candles for a net of 14 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 89.7848. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 9 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 69.72. 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 1 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 116.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 5 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 buy 35 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERG closed up 181.180 at 26,031.811. Volume was 22% below average (neutral) and Bollinger Bands were 24% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 25,617.93 24,349.19 25,072.94
Volatility: 14 26 20
Volume: 277,685,248 350,499,008 321,980,000
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 3.8% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. 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 28 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.