Dow Jones Industrial Average (.DJI) S&P 500 now up 11% from December lows

Dow Jones Industrial Average (.DJI) S&P 500 now up 11% from December lows

Dow Jones Industrial Average (.DJI) S&P 500 now up 11% from December lows

The Dow Jones Industrial Average DJIA, +0.59% rallied 133 points, or 0.6%, in midday trade, to extend its bounce off the Dec. 24 low to 11.0%. But the Dow was still below the widely followed 50-day moving average (50-DMA), which many chart watchers use as a short-term trend tracker, that currently extends to about 24,364. The S&P 500 SPX, +0.22% has gained 11.3% from its Dec. 24 low, but was still below its 50-DMA at 2,629.

Meanwhile, the Nasdaq Composite COMP, +0.15% has shot up 13.6% from its Dec. 24 closing low, and closed above its 50-DMA on Tuesday. Elsewhere, the Dow Jones U.S. Total Stock Market index DWCF, +0.30% traded above its 50-DMA intraday Wednesday, the first time it’s done that since Dec. 4, before slipping back below it.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 25,298.68.

The projected lower bound is: 23,068.70.

The projected closing price is: 24,183.69.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 9 white candles and 1 black candles for a net of 8 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 4 rising windows in the last 50 candles–this makes the current rising window even more bullish.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 84.4520. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 8 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 55.39. 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 14 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 112.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 2 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 10 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 141.570 at 24,207.160. Volume was 14% below average (neutral) and Bollinger Bands were 19% wider than normal.

Open High Low Close Volume___
24,139.91024,288.60924,119.72124,207.160 302,833,504

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 23,749.78 24,364.02 24,964.91
Volatility: 27 30 20
Volume: 326,921,504 370,706,400 329,214,592

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 up today (bullish) 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 3.0% below its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of .DJI at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on .DJI and have had this outlook for the last 3 periods.

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