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Dow Jones Industrial Average (.DJI) surges higher as investors drew encouragement from President Donald Trump’s plan to re-open the world’s biggest economy

Dow Jones Industrial Average (.DJI) surges higher as investors drew encouragement from President Donald Trump’s plan to re-open the world’s biggest economy

Wall Street was also buoyed by Boeing Co.’s announcement that it will re-start production at its Seattle-based facility, where it assembles some of its biggest jetliners, in a move that bring around 27,000 people back to work.

With President Trump detailing a three-stage process to bring the world’s largest economy back online “one careful step at a time”, coronavirus infection rates starting to plateau and a specialist medical website, STAT, reporting that Gilead Science’s nascent coronavirus treatment, remdesivir, has induced repaid recoveries in patients participating in a University of Chicago hospital study, investors were happy to accelerate risk-on bets in overnight trading even amid some of the weakest China economic data on record.

China’s GDP, in fact, collapsed by -6.8% over the three months ending in March, according to the National Statistics Bureau, the first contraction since records began in 1992.

A modestly better-than-expected reading for March industrial output, as well as ongoing plans for both fiscal and monetary support for the world’s second largest economy provided some support to the grim assessment, but the data nonetheless indicates the scale of the damage investors can expect from markets around the world in the coming months.

Still, even with the U.S. dollar gaining against its global currency peers, and benchmark 10-year Treasury note yields holding at 0.64% in overnight trade, the combination of a pre-market surge for Boeing and hopes for a breakthrough in coronavirus treatment look set to provide a solid boost to the opening bell on Wall Street.

Futures contracts tied to the Dow Jones Industrial Average , which clawed its way into positive territory last night, are indicated 750 points higher at the start of trading Friday, while those linked to the S&P 500, which has risen 8.32% so far this month, are suggesting an 85 point gain for the broader benchmark.

Technical Indicators

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

The projected upper bound is: 26,476.01.

The projected lower bound is: 20,388.55.

The projected closing price is: 23,432.28.

Candlesticks

A black body occurred (because prices closed lower 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 21 white candles and 29 black candles for a net of 8 black candles.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

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 69.5345. This is not an overbought or oversold reading. The last signal was a sell 1 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 52.64. 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 16 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 67. This is not a topping or bottoming area. The last signal was a sell 1 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 14 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 33.330 at 23,537.680. Volume was 11% above average (neutral) and Bollinger Bands were 61% wider than normal.

Open High Low Close Volume___
23,543.66023,598.08023,211.38123,537.680 478,624,608

Technical Outlook

Moving Averages: 10-period 50-period 200-period
Close: 22,933.53 24,659.39 26,697.91
Volatility: 52 86 45
Volume: 504,646,304 551,087,232 333,125,792

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 11.8% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 4 periods.

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