Dow Jones Industrial Average Target 13500 August September 32000 in 2021
U.S. stocks were indicated to start higher on Tuesday, as futures added to gains Monday night, after a last-hour turnaround from energy and technology shares allowed the major benchmarks to finish in positive territory after spending much of the day’s session in the red.
Corporate results from the likes of entertainment giant Disney, chemical and materials company DuPont and videogame makers Electronic Arts and Activision will be parsed for the impact of coronavirus on their respective businesses.
How are benchmarks faring?
Futures for the Dow Jones Industrial Average were up 183 points, or 0.8%, at 23,754, those for the S&P 500 index were up 18.70 points at 2,844, a gain of 0.7%, while Nasdaq-100 futures were climbing 58.50 points, or 0.7%, at 8,854.
On Monday, the Dow managed a gain of 26.07 points, or 0.1%, to end at 23,749.76, and the S&P 500 gained 12.03 points, or 0.4%, finishing at 2,842.74, with both benchmarks erasing declines of more than 1% for their sharpest intraday reversal since March, according to Dow Jones Market Data. The Nasdaq Composite rose 105.77 points, or 1.2%, closing at 8,710.7.
Shayne Heffernan Trade Idea
“This Dow Jones forecast for 2020 and 2021 is based on our 2 leading indicators: Treasury rates as well as the Russell 2000. The first one says that ‘risk on’ is returning to markets, the other one was ‘risk on’ is starting as soon as the Russell 2000 index crosses 1625 points.
We mapped the consistent message from our 2 leading (risk) indicators to the Dow Jones charts in a top down approach. The quarterly chart confirms the monthly and weekly. This suggest a very high level of reliability.”
“August and September will be brutal on Wall Street but that will be your chance to buy, 2021 will see a significant rally” Shayne Heffernan PhD in Economics
Why This Matters
Markets looked to extend a slight uptrend that took hold late in the session Monday as investors dismissed reports on growing tensions between China and the U.S. and continued to focus on the prospect of businesses in the U.S. slowly opening up after a period of stultifying coronavirus lockdowns.
California Gov. Gavin Newsom on Monday said that clothing stores and a number of other retailers could open for curbside pickup on Friday, among a number of states that are slowly attempting to unwind measures put in place to limit the deadly contagious disease COVID-19.
Meanwhile, on the other side of America, New York Gov. Andrew Cuomo on Monday said the Empire State (https:// www.wsj.com/articles/coronavirus-latest-news-05-04-2020-11588585598?mod=searchresults&page=1&pos=1)was seeing a drop in hospitalizations but wanted to see the numbers fall more substantially before commencing reopenings, which would come in phases.
Investors thus far have been sanguine about the outlook, despite signs that the road for the economy will be a long one, even if stocks have managed to rally from March lows.
A recent rebound in crude-oil prices also has apparently buttressed some buying sentiment, after the embattled energy sector, with a number of debt-laden energy producers, on the ropes amid a glut of oil and waning appetite due to the pandemic.
On Tuesday, investors will focus on some of the winners and losers of the viral outbreak (http://www.marketwatch.com/ story/disneys-struggles-videogames-success-and-the-potential-for-fake-meat-take-earnings-stage-2020-05-04), with Walt Disney & Co. (DIS) set to provide an early look at how theme-park closures, film delays and a lack of live sports has impacted its business.
Results from Electronic Arts Inc.(EA) and Activision Blizzard Inc. (ATVI), videogame makers that have prospered amid stay-at-home protocols, will be eagerly watched for their outlooks. Meanwhile, earnings from alternative-meat maker Beyond Meat Inc. (BYND) will come as the meat supply-chain is being hammered by workers sickened by the viral outbreak and a decline in purchases from restaurants and big buyers.
On the economic front, investors will watch for a report on international trade due at 8:30 a.m. Eastern, and survey data on the services sector from the Institute for Supply Management at 10 a.m.
Meanwhile, the investors will hear from Chicago Federal Reserve President Charles Evans at 10 a.m., St. Louis Fed President James Bullard and Atlanta Fed President Raphael Bostic at 2 p.m.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 26,743.23.
The projected lower bound is: 20,546.58.
The projected closing price is: 23,644.91.
A white body occurred (because prices closed higher 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 23 white candles and 27 black candles for a net of 4 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 36.0457. This is not an overbought or oversold reading. 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 51.52. 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 28 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 -38. This is not a topping or bottoming area. The last signal was a sell 1 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 26 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERG closed up 26.070 at 23,749.760. Volume was 20% below average (neutral) and Bollinger Bands were 52% narrower than normal.
Open High Low Close Volume 23,581.5512 3,769.5612 3,361.1602 3,749.760 358,391,040
Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: BUllish
Moving Averages: 10-period 50-period 200-period Close: 23,847.36 23,356.89 26,506.33 Volatility: 32 88 46 Volume: 414,395,968 585,915,264 345,914,240
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 10.4% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods.
There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 16 periods.
We invite you to try out any MetaStock product (including Add-Ons) for 30 days. If you are not convinced that it helps you make more accurate, educated trading decisions, just return it to us within the 30 days for a refund of the purchase price. It’s that simple. This policy does not apply to subscriptions.