Dow Jones Industrial Average (.DJI) still a stock market correction
Dow Jones futures rose slightly Sunday night, along with S&P 500 futures and Nasdaq futures. It’s still a stock market correction. The major averages closed last week little changed — the Dow Jones rose, the S&P 500 index was virtually flat and the Nasdaq composite edged lower — after promising gains early in the week. Worse, more growth stocks fell below key support areas. Apple (AAPL), Boeing (BA), Advanced Micro Devices (AMD), Activision Blizzard (ATVI), Match Group (MTCH), Ross Stores (ROST) and TJX Cos. (TJX) all fell below their 50-day lines by Friday’s close.
The lesson is clear. It is very hard to make money in a stock market correction, even during a rally attempt. During a stock market correction, build your watchlists. Wait until a follow-through day confirms a rally attempt. Watch for leading stocks, some of which should be on your watchlists, break out into buy zones.
Dow Jones futures rose less than 0.1% vs. fair value. S&P 500 futures advanced 0.1%. Nasdaq 100 futures climbed 0.25% vs. fair value. Remember that Dow futures, Apple stock and other overnight action don’t necessarily translate in actual trading in the next regular session.
That’s been especially true during the stock market correction, with the major averages whipsawing during regular trading and sometimes overnight.
China’s Shanghai composite jumped 4.2% intraday.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 26,080.81.
The projected lower bound is: 24,805.28.
The projected closing price is: 25,443.04.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 60.1727. This is not an overbought or oversold reading. The last signal was a buy 3 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 40.58. 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 5 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 -61. This is not a topping or bottoming area. The last signal was a buy 3 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 sell 10 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERAGE closed up 64.891 at 25,444.340. Volume was 23% above average (neutral) and Bollinger Bands were 90% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 25,648.84 25,987.60 25,158.92
Volatility: 28 16 19
Volume: 348,433,632 278,829,184 350,584,416
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.
DJ INDU AVERAGE is currently 1.1% 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 7 periods.
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