Dow Jones Industrial Average (.DJI) Takes a Dip
U.S. stock indexes edged down at the open on Thursday as developing Sino-U.S. tensions and mixed retail earnings added to concerns about the pace of a recovery from a coronavirus-fueled economic slump.
The Dow Jones Industrial Average .DJI fell 11.63 points, or 0.05%, at the open to 24,564.27. The S&P 500 .SPX opened slightly down by 1.66 points, or 0.06%, at 2,969.95, while the Nasdaq Composite .IXIC dropped 0.59 points, or 0.01%, to 9,375.19 at the opening bell.
Shayne Heffernan Trade Idea
“You can’t justify the rally right now from a fundamental perspective.” Shayne Heffernan PhD in Economics
Overall, the bias in prices is: Sideways.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 27,305.75.
The projected lower bound is: 21,919.49.
The projected closing price is: 24,612.62.
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 25 white candles and 25 black 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 85.3728. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 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 56.93. 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 41 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 116.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 2 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 1 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERG closed up 15.949 at 24,591.850. Volume was 82% below average (consolidating) and Bollinger Bands were 63% narrower than normal.
Open High Low Close Volume 24,564.270 24,718.461 24,516.430 24,591.850 84,479,512
Technical Outlook Short Term: Overbought Intermediate Term: Bearish Long Term: Bearish
Moving Averages: 10-period 50-period 200-period Close: 24,084.88 22,856.42 26,320.80 Volatility: 35 79 46 Volume: 381,842,048 526,163,456 351,073,504
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 6.6% below its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods.
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 4 periods.
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