Dow Jones Industrial Average (.DJI) snaps 8-session win streak after attack on Saudi oil facilities sends crude soaring
U.S. stocks ended lower Monday after a weekend attack on Saudi Arabia’s oil-production facilities unsettled global markets, halted the Dow’s eight-session winning streak and sent crude prices rocketing higher.
The attacks played out in the Middle East as stocks were on the brink of record highs ahead of eagerly awaited central-bank meetings, headlined by the Federal Reserve’s interest-rate decision on Wednesday.
How are major benchmarks faring?
The Dow Jones Industrial Average DJIA, -0.52% fell 142.7 points, or 0.5%, to close at 27,076.82, ending an eight-day winning streak. The S&P 500 index SPX, -0.31% shed 9.43 points, or 0.3%, to finish at 2,997.96, while the Nasdaq Composite Index COMP, -0.28% dropped 23.17 points, or 0.3%, to end at 8,153.54.
The Dow finished Monday around 1% below its record all-time closing high of 27,359.16 hit on July 15, while the S&P 500 stood about 0.9% from its record close at 3,025.86 set on July 26. The Nasdaq Composite Index was off 2.1% from its all-time closing high of 8,330.21, also hit on July 26.
Technical Indicators
Overall, the bias in prices is: Upwards.
By the way, prices are vulnerable to a correction towards 26,569.79.
The projected upper bound is: 27,866.42.
The projected lower bound is: 26,293.40.
The projected closing price is: 27,079.91.
Candlesticks
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 27 white candles and 23 black candles for a net of 4 white candles.
A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend.
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 75.1700. This is not an overbought or oversold reading. The last signal was a sell 0 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 60.35. 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 28 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 79. This is not a topping or bottoming area. The last signal was a sell 0 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 17 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERG closed down -142.699 at 27,076.820. Volume was 18% below average (neutral) and Bollinger Bands were 26% wider than normal.
Open High Low Close Volume___
27,146.06127,172.86927,032.56127,076.820 220,615,008
Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 26,835.99 26,604.21 25,720.83
Volatility: 13 19 19
Volume: 249,087,856 263,044,944 301,346,016
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 gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
DJ INDU AVERG is currently 5.3% 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 6 periods.
