Dow Jones Industrial Average (.DJI) US-China trade optimism
Stocks rose Wednesday as signs of thawing trade tensions helped lift the mood on Wall Street following a bruising few weeks for global markets.
The Dow Jones Industrial Average gained 0.65%, paring sharp gains that had earlier lifted the index as much as 400 points. The Nasdaq Composite rose 0.95%, and the S&P 500 gained 0.55%. On Friday, stocks posted their largest weekly decline since March.
Shares of trade-sensitive companies like Boeing (+1.95%) and Caterpillar (+2.21%) jumped after the Wall Street Journal reported China is drafting plans to replace its industrial Made in China program, which has been at the center of the Trump administration’s frustrations with Beijing. The new plan would aim to increase access to foreign companies.
Overall, the bias in prices is: Downwards
By the way, prices are vulnerable to a correction towards 25,340.03.
The projected upper bound is: 25,483.70.
The projected lower bound is: 23,485.88.
The projected closing price is: 24,484.79.
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 24 white candles and 26 black candles for a net of 2 black candles.
An inverted hammer occurred. If this occurs during a downtrend (which appears to be the case with DJ INDU AVERAGE) it implies a reversal. Look for a confirmation of the reversal on the bar.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
A shooting star occurred (a shooting star has a small real body near the bottom of the candle and a long upper shadow). During an uptrend the long upper shadow indicates that the bears are gaining control and a top may occur.
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 32.2135. This is not an overbought or oversold reading. The last signal was a sell 5 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 42.46. 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 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 -36. This is not a topping or bottoming area. The last signal was a sell 5 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 sell 2 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERAGE closed up 157.029 at 24,527.270. Volume was 9% above average (neutral) and Bollinger Bands were 22% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 24,975.46 25,326.13 25,091.21
Volatility: 29 25 19
Volume: 390,379,936 362,325,696 333,698,016
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 AVERAGE is currently 2.2% below its 200-period moving average and is in an downward trend. Volatility is high 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 1 periods.
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