Dow Jones Industrial Average (.DJI) staged a solid rebound after suffering its worst loss of the year

Dow Jones Industrial Average (.DJI) staged a solid rebound after suffering its worst loss of the year

Dow Jones Industrial Average (.DJI) staged a solid rebound after suffering its worst loss of the year

The stock market today staged a solid rebound after suffering its worst loss of the year on Monday. Apple, Microsoft and Disney boosted the Dow Jones industrials.

The Nasdaq composite rallied 1.4%, the S&P 500 rose 1.3% and the Dow Jones Industrial Average gained 1.2%. Small caps tracked by the Russell 2000 rose 1%. The bounce back was welcome after Monday’s big rout, though preliminary data showed lighter volume on the NYSE and Nasdaq vs. Monday.

Stocks opened higher after China’s central bank fixed the yuan at a higher-than-expected level. The key indexes eased during the session but extended their gains into the close. But the market remains in a correction.

The Dow Jones index snapped a five-session losing streak after finding critical support at its 200-day moving average, while the S&P 500 and Nasdaq stopped their losses at six session. The Dow is up 11% for the year, while the S&P 500 and Nasdaq hold respective year-to-date gains of 15% and 18%.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 26,643.15.

The projected lower bound is: 25,433.64.

The projected closing price is: 26,038.40.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 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 20.5824. This is not an overbought or oversold reading. The last signal was a buy 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 34.01. This is not a topping or bottoming area. However, the RSI just crossed above 30 from a bottoming formation. This is a bullish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 0 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 -171.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 14 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 sell 11 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 311.779 at 26,029.520. Volume was 17% above average (neutral) and Bollinger Bands were 38% wider than normal.

Open     High      Low     Close     Volume___
25,810.61926,038.68025,710.86926,029.520 322,972,544
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 26,770.27 26,488.78 25,557.76
Volatility: 20 15 20
Volume: 314,721,216 269,150,400 316,620,416

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 1.8% above 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 volume flowing into and out of .DJI at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .DJI and have had this outlook for the last 5 periods.

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