Strong Walmart earnings help to prop up the Dow Jones Industrial Average (.DJI)
U.S. stocks closed higher Tuesday, with the Nasdaq extending its winning streak to a seventh session, as another round of U.S.-China trade talks began in Washington. The market’s gains were led by so-called defensive sectors such as utilities and consumer staples, which are less sensitive to economic cycles.
How did major benchmarks fare?
The Dow Jones Industrial Average DJIA, +0.03% rose 8.07 points to 25,891.32 and the S&P 500 index SPX, +0.15% climbed 4.16 points, or 0.2%, to 2,779.76. The Nasdaq COMP, +0.19% advanced 14.36 points, or 0.2%, to 7,486.77, logging its longest stretch of gains since the index rose for eight straight days in August.
What drove the market?
Recent gains were fueled, in part, by upbeat expectations surrounding U.S.-China trade negotiations held in Beijing. Talks resumed this week in Washington, sparking hopes that the two sides can continue to make progress toward a deal.
President Donald Trump on Sunday tweeted about the trade talks, saying “Big progress being made on soooo many different fronts!”
Shares of Dow component Walmart Inc. WMT, +2.21% climbed 2.2% after the retailer reported fourth-quarter earnings and revenues that surpassed Wall Street expectations, while raising its annual dividend by 2%.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 24,736.86.
The projected upper bound is: 26,882.13.
The projected lower bound is: 24,935.08.
The projected closing price is: 25,908.61.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 32 white candles and 18 black candles for a net of 14 white 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 89.4044. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 6 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 69.52. 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 36 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 167.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 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 buy 32 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERG closed up 8.070 at 25,891.320. Volume was 23% below average (neutral) and Bollinger Bands were 25% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 25,431.38 24,267.65 25,046.50
Volatility: 15 27 20
Volume: 280,721,728 359,224,288 322,995,264
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 3.4% above its 200-period moving average and is in an upward trend. Volatility is Our volume indicators reflect moderate flows of volume into .DJI (mildly bullish). Our trend forecasting oscillators are currently bullish on .DJI and have had this outlook for the last 25 periods.