Dow Jones Industrial Average (.DJI) Up Amid Mixed Action In Blue Chip Stocks
A 10-point drop by Travelers (TRV) wasn’t enough to push the Dow Jones Industrial Average into negative territory in stocks today. Rather, the 30-stock blue chip index rose around 0.3%, supported by a strong rebound by managed health care giant United Health (UNH) and gains of at 2 points or more by at least four other components.
Travelers posted a shock 44% plunge in third-quarter earnings to $1.43 a share, sharply missing the Refinitiv view by 39%. Revenue rose 4%, pretty much matching its long string of low to mid-single-digit top-line gains since the start of 2017. United Health rallied back above its long-term 200-day moving average, one bullish step as the former market leader works on a new base that may set up a new buy point.
The Dow Jones industrials’ gain was tempered by sharp drops in McDonald’s (MCD) and Merck (MRK). Both weighed on the popular price-weighted index. The S&P 500 edged 0.3% higher. Volume was moving roughly 4% to 5% higher vs. the same time Monday on both main exchanges.
Overall, the bias in prices is: Sideways.
By the way, prices are vulnerable to a correction towards 26,656.12.
The projected upper bound is: 27,546.03.
The projected lower bound is: 26,065.40.
The projected closing price is: 26,805.71.
A black body occurred (because prices closed lower 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 27 white candles and 23 black candles for a net of 4 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 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 12.7731. 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 51.74. 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 54 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 44. This is not a topping or bottoming area. The last signal was a buy 9 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 6 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERG closed down -39.541 at 26,788.100. Volume was 2% above average (neutral) and Bollinger Bands were 24% narrower than normal.
Open High Low Close Volume___
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 26,788.52 26,556.86 26,091.09
Volatility: 11 18 15
Volume: 236,250,064 253,052,528 280,069,792
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.
DJ INDU AVERG is currently 2.7% above 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 12 periods.
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