The Dow Jones Industrial Average (.DJI) Industrial Average rose modestly Monday after Donald Trump said he will delay increasing tariffs on China-made goods

The Dow Jones Industrial Average (.DJI) Industrial Average rose modestly Monday after Donald Trump said he will delay increasing tariffs on China-made goods

The Dow Jones Industrial Average (.DJI) Industrial Average rose modestly Monday after Donald Trump said he will delay increasing tariffs on China-made goods

Stocks rose on Monday, Feb. 25, after President Trump said he would delay increasing tariffs on China-made goods, set to kick in on March 1, following “substantial progress” over two weeks of trade talks between Washington and Beijing.

Trump conveyed the message in a series of tweets on Sunday that also suggested he could hold a near-term meeting with Chinese President Xi Jinping at his Mar-a-Lago resort in Florida, perhaps as soon as next month, in order to conclude the months-long negotiations.

“I am pleased to report that the U.S. has made substantial progress in our trade talks with China on important structural issues including intellectual property protection, technology transfer, agriculture, services, currency, and many other issues,” Trump said in a tweet. He added: “Assuming both sides make additional progress, we will be planning a Summit for President Xi and myself, at Mar-a-Lago, to conclude an agreement. A very good weekend for U.S. & China!”

The Dow Jones Industrial Average closed up 60 points, or 0.23%, to 26,092, the S&P 500 gained 0.12%, and the Nasdaq rose 0.36%.

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 24,942.50.

The projected upper bound is: 27,070.28.

The projected lower bound is: 25,182.49.

The projected closing price is: 26,126.38.

Candlesticks

A black body occurred (because prices closed lower 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 32 white candles and 18 black candles for a net of 14 white candles.

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 rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 7 rising windows in the last 50 candles–this makes the current rising window even more bullish.

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 81.3970. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 10 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 70.53. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 2 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 122.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 6 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 36 period(s) ago.

Rex Takasugi – TD Profile

DJ INDU AVERG closed up 60.139 at 26,091.949. Volume was 21% below average (neutral) and Bollinger Bands were 23% narrower than normal.

Open High Low Close Volume___
26,126.15026,241.42026,080.66026,091.949 281,602,976

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

Moving Averages: 10-period 50-period 200-period
Close: 25,716.49 24,383.63 25,081.60
Volatility: 13 26 20
Volume: 281,024,608 349,271,808 321,663,328

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 AVERG gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
DJ INDU AVERG is currently 4.0% 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 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 29 periods. Our momentum oscillator is currently indicating that .DJI is currently in an overbought condition.

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