Dow Jones Industrial Average (.DJI) Traders Return to Wall Street

Dow Jones Industrial Average (.DJI) Traders Return to Wall Street

Dow Jones Industrial Average (.DJI) Traders Return to Wall Street

Investors celebrated the reopening of the new york stock exchange by sending stocks soaring Tuesday, as the nation continues to unwind from pandemic shutdowns and a lot of drug companies chase coronavirus cures.

The Dow Jones industrial average closed the day up 530 points, about 2.2 percent. The blue chips broke through the psychological threshold of 25,000 during an afternoon surge before giving back a number of those gains and closing at 24,995.11.

The Standard & Poor’s 500 index jumped 36 points, about 1.2 percent, to finish at 2,991.77. The broad index cracked 3,000 for the first time since March throughout the session. The tech-heavy nasdaq added 15 points, or about 0.2 percent, to close at 9,340.22. All three indexes are coming off strong finishes last week.

“With additional signs of the worst of the virus being behind United States, investors are starting to focus on more countries reopening and the lifting of travel bans around the world,” Shayne Heffernan, CEO and Founder of Heffx said in an email. “More signs of reopening and more signs of travel bans being lifted creates more clarity for markets.”

Nine of 11 S&P stock sectors advanced, led by financials and industrials, which had been rejected sectors whose comeback is a sign that the slow recovery is broadening. Health and technology fell on profit-taking.

All but six of the 30 Dow blue chips were up on the day. Goldman Sachs led the pack at 9%. JPMorgan Chase advanced 7%. Raytheon Technologies and Dow chemical were considerable gainers.

Investors received an overflow of good news. The commerce department reported new-home sales climbed 0.6 % in April, an unexpected increase as economists had forecast a 22 % drop.

The Conference Board said its consumer confidence index improved to 86.6 this month from 85.7 in April. Economists had expected higher, however the numbers bolster sentiment after weeks of dour economic data.

Price Performance

Top Movers

Bottom Movers

Shayne Heffernan Trade Idea

“You can’t justify the rally right now from a fundamental perspective.”

Technical Analysis

Overall, the bias in prices is: Sideways.

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

By the way, prices are vulnerable to a correction towards 24,770.94.

The projected upper bound is: 27,396.03.

The projected lower bound is: 22,666.57.

The projected closing price is: 25,031.30.

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 rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 8 rising windows in the last 50 candles–this makes the current rising window even more 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 77.3399. This is not an overbought or oversold reading. The last signal was a sell 0 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 60.05. 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 43 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 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 3 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 529.949 at 24,995.109. Volume was 10% below average (neutral) and Bollinger Bands were 59% narrower than normal.

Open         High        Low         Close         Volume
24,781.840   25,176.420  24,781.840  24,995.109    426,293,504
Technical Outlook
Short Term:        Overbought
Intermediate Term: Bullish
Long Term:         Bearish
Moving Averages: 10-period        50-period          200-period
Close:           24,163.80        22,955.54          26,305.58
Volatility:      35               70                 46
Volume:          407,088,736      509,992,704        352,636,704

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 gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.

DJ INDU AVERG is currently 5.0% below 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 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 0 periods.

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