Dow Jones Industrial Average (.DJI) Stocks Waver Despite ‘Substantial’ China Trade Deal

Dow Jones Industrial Average (.DJI) Stocks Waver Despite ‘Substantial’ China Trade Deal

Dow Jones Industrial Average (.DJI) Stocks Waver Despite ‘Substantial’ China Trade Deal

Key indexes hovered near the flat line in the stock market today amid continued uncertainty over a “phase one” trade deal with China. Nike gave the Dow Jones Industrial Average a boost.

The Dow Jones Industrial Average was slightly lower and the Nasdaq composite was barely positive heading into the last hour of trading. The S&P 500 was down less than 0.1%. Small caps tracked by the Russell 2000 lagged with a 0.3% loss.

President Donald Trump on Friday touted a “very substantial phase one” trade deal with China. But reports Monday morning said China wants another round of trade talks before signing a deal.

Blue chips were split nearly 50-50 in the Dow Jones today. Nike (NKE) and 3M (MMM), up more than 1% each, led the upside in the Dow Jones index. 3M, on track for a fourth straight advance, is trying to retake its downward-sloping 50-day line.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 27,632.08.

The projected lower bound is: 25,954.73.

The projected closing price is: 26,793.41.

Candlesticks

A white body occurred (because prices closed higher 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 28 white candles and 22 black candles for a net of 6 white candles.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

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.

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 74.2463. This is not an overbought or oversold reading. The last signal was a buy 7 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 53.53. 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 48 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 55. This is not a topping or bottoming area. The last signal was a buy 3 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 0 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed down -29.230 at 26,787.359. Volume was 31% below average (neutral) and Bollinger Bands were 18% narrower than normal.

Open     High      Low     Close     Volume___
26,766.43026,874.33026,749.18026,787.359 178,616,448
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 26,451.51 26,454.64 25,980.83
Volatility: 20 20 16
Volume: 237,892,160 259,684,800 283,121,984

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 3.1% 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 6 periods.

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