Dow Jones Industrial Average (.DJI) Takes a Dip

Dow Jones Industrial Average (.DJI) Takes a Dip

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.

Price Performance

Top Movers

Bottom Movers

Shayne Heffernan Trade Idea

“You can’t justify the rally right now from a fundamental perspective.” Shayne Heffernan PhD in Economics

Technical Analysis

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.

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 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 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 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.

MACD

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.

Summary

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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