Dow Jones Industrial Average (.DJI) surges back from weak open

Dow Jones Industrial Average (.DJI) surges back from weak open

Dow Jones Industrial Average (.DJI) surges back from weak open

The Dow Jones Industrial Average stumbled in pre-market futures trading but quickly regained its footing following the opening bell. As of 11:24 am ET, the index stood at 26,345.63, rising 127.5 points or 0.49 percent as Dow Inc. surged to a new 52-week high. The rally was all the more impressive since the S&P 500 and Nasdaq failed to sustain any momentum, with the former remaining unchanged at 2,873.5 and the latter dropping 0.25 percent to 7,875.84.


Today, the Dow should receive some tailwinds from a Wall Street Journal report that President Donald Trump will “likely” announce plans for a summit with Chinese President Xi Jinping on Thursday, presumably during his White House meeting with Vice Premier Liu He.

The unnamed Trump administration official cited in the report cautioned that the summit announcement is not a certainty, but the fact that one is being discussed at all is confirmation that the world’s two largest economies have made significant breakthroughs in their negotiations, which extended far past Trump’s original hard deadline.

Barring unforeseen circumstances, observers expect that a Trump-Xi summit would conclude with the two leaders putting ink to the new agreement, an event for which the stock market – and particularly the Dow – has been begging for months.

A Trump-Xi summit had previously been tentatively scheduled for the end of March. Those plans were scrapped after the disappointing conclusion to Trump’s summit with North Korean leader Kim Jong-un, reportedly because Trump’s behavior had spooked Chinese officials.


However, Wall Street must also grapple with the first credible indication that Donald Trump may not emerge from Special Counsel Robert Mueller’s investigation into the 2016 presidential contest as squeaky-clean as he has boasted.

According to the New York Times, several investigators and officials involved with the probe – though not the special counsel himself – have leaked that the so-called Mueller report includes findings that would be damaging to President Trump if made public.

That would seem to contradict the four-page summary letter published by Attorney General William Barr, which indicated that the probe had found no evidence of collusion between the Trump campaign and Russia’s government. Critics have accused Barr – a Trump appointee – of glossing over evidence that paints a more complicated picture of the Trump campaign. While refusing to attack Mueller or Barr directly, Democratic House Intel Chairman Adam Schiff has repeatedly maintained that he has reviewed evidence of collusion.

The actual Mueller report remains sealed – for now. Attorney General Barr has said the Justice Department desires to release it to Congress as quickly as possible but must first censor confidential information from the nearly 400-page document.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 26,932.51.

The projected lower bound is: 25,909.11.

The projected closing price is: 26,420.81.


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 30 white candles and 20 black candles for a net of 10 white candles.

An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend. It then signifies that the momentum may be shifting from the bears to the bulls.

If the engulfing bullish pattern occurs during an uptrend (which appears to be the case with DJ INDU AVERG), it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.

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 91.7710. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 11 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 66.07. 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 sell 27 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 145.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 17 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 buy 3 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 166.500 at 26,384.631. Volume was 31% below average (neutral) and Bollinger Bands were 46% narrower than normal.

Open High Low Close Volume___
26,213.42026,398.90026,212.77926,384.631 233,044,080

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

Moving Averages: 10-period 50-period 200-period
Close: 25,898.89 25,602.67 25,213.91
Volatility: 15 13 20
Volume: 285,439,104 307,966,656 317,818,080

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 AVERG is currently 4.6% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. 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 1 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :