Dow Jones Industrial Average (.DJI) Wall Street slips as Fed lifts rates again

Dow Jones Industrial Average (.DJI) Wall Street slips as Fed lifts rates again

Dow Jones Industrial Average (.DJI) Wall Street slips as Fed lifts rates again

US stock benchmarks slipped on Wednesday after the Federal Reserve raised interest rates as expected, but signalled a slightly more aggressive plan to tighten monetary policy in the coming months.

The Dow Jones Industrial Average slumped 120 points, or 0.5%, to 25,201. The S&P 500 fell 11 points, or 0.4%, at 2,776. The Nasdaq Composite Index, meanwhile, shed eight points, or 0.1%, at 7,696.

In its decision yesterday, the US central bank raised its benchmark overnight lending rate a quarter of a percentage point to a range of between 1.75% and 2%. Two additional hikes are now expected by the end of this year, compared to one previously.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 24,776.34.

The projected upper bound is: 25,840.23.

The projected lower bound is: 24,608.88.

The projected closing price is: 25,224.56.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 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 75.3727. 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 59.72. 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 88 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 80. This is not a topping or bottoming area. The last signal was a sell 0 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 5 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERAGE closed down -119.531 at 25,201.199. Volume was 17% below average (neutral) and Bollinger Bands were 31% narrower than normal.

Open High Low Close Volume___
25,328.65025,362.07025,191.42025,201.199 329,699,712

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

Moving Averages: 10-period 50-period 200-period
Close: 25,021.33 24,582.08 24,164.72
Volatility: 13 16 18
Volume: 325,566,752 345,290,720 371,225,024

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 AVERAGE is currently 4.3% 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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