Dow Jones Industrial Average (.DJI) Trump now oversees the tightest labor market in five decades

Dow Jones Industrial Average (.DJI) Trump now oversees the tightest labor market in five decades

Dow Jones Industrial Average (.DJI) Trump now oversees the tightest labor market in five decades

The U.S. labor market appears to be in solid shape at the start of the second quarter, alleviating fears that the world’s largest economy was barreling toward stagnation. Jobless claims, which track the number of Americans laid off from their jobs, plunged last week to the lowest level since 1969.

Claims dropped by 8,000 to a seasonally adjusted annual rate of 196,000 for the week ended April 6, the Department of Labor reported Thursday. A median estimate of analysts had called for an increase to 211,000.

The 10-year Treasury yield moved to a session high of 2.51% after the weekly jobs report was released. Yields rise when bond prices fall.

U.S. economic growth accelerated at the start of last year as President Trump’s tax reforms took effect. Growth has moderated significantly in the last two quarters but remains well above comparable economies in Asia and Europe. A solid labor market is generally viewed as a good measuring stick for how well the overall economy is doing. Combined with a solid uptick in average hourly earnings, a tight labor market suggests the U.S. economy is well positioned to weather international headwinds.

All of Wall Street’s major indexes finished well off session lows, though trading activity was subdued for most of the day, mirroring a tepid pre-market for Dow futures. The benchmark Dow Jones Industrial Average fell 80 points, or 0.3%, to 26,077.00. Roughly half of the 30 index members traded in the red.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 26,643.74.

The projected lower bound is: 25,687.49.

The projected closing price is: 26,165.62.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 15.3729. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 2 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 56.79. 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 32 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 29. This is not a topping or bottoming area. The last signal was a sell 3 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 8 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed down -14.109 at 26,143.051. Volume was 37% below average (neutral) and Bollinger Bands were 41% narrower than normal.

Open High Low Close Volume___
26,188.21126,229.88126,062.59026,143.051 211,676,800

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

Moving Averages: 10-period 50-period 200-period
Close: 26,218.58 25,758.74 25,256.72
Volatility: 11 12 20
Volume: 247,027,936 294,880,928 313,415,936

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 3.5% 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 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 6 periods.

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