Dow Jones Industrial Average (.DJI) Why are investors worried?
Wall Street had come to believe that Washington and Beijing were edging closer to a trade deal agreement over the past few weeks.With trade disruption in the rear-view mirror — or so investors thought — the markets instead focused on the Federal Reserve’s interest-rate policy and the strong US economy.Between the Fed keeping rates steady, low inflation and strong growth, investors enjoyed a “Goldilocks” market: everything was just right. The S&P 500 and the Nasdaq Composite hit record highs multiple times.But Trump tweeted about trade Sunday, throwing financial markets for a loop — and certainty out of the window. The VIX volatility index hit its highest level since January.
President Donald Trump on Sunday threatened more tariffs on Chinese imports. That initially dragged markets way down on Monday. But investors had second thoughts, choosing to believe Trump’s comments were more bark than bite. The Dow closed Monday down just 66 points.But after the market closed, US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin doubled down on the tariff threat, telling the press Trump is serious — and the new import penalties will be imposed Friday.So the market freaked out all over again Tuesday, falling steadily throughout the day.
Overall, the bias in prices is: Sideways.
The projected upper bound is: 26,430.18.
The projected lower bound is: 25,494.93.
The projected closing price is: 25,962.55.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
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 24 white candles and 26 black candles for a net of 2 black candles.
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 43.8194. This is not an overbought or oversold reading. The last signal was a sell 9 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 40.24. 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 49 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 -275.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 2 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 7 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERG closed down -473.391 at 25,965.090. Volume was 9% above average (neutral) and Bollinger Bands were 56% narrower than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 26,439.62 26,084.28 25,410.97
Volatility: 12 11 20
Volume: 297,549,408 295,943,168 317,466,240
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 2.2% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 23 periods.
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