TradeSignals Dow Jones Industrial Average Morning Commentary

TradeSignals Dow Jones Industrial Average Morning Commentary -- 2007-08-20 10:01:57

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Dow Jones Industrial Average
The Dow Jones Industrial Average finished the previous session
weaker reversing the firmer tone seen during the prior session. Trend
indicators are indicating a bearish market and the overall strength of
the trend is strong, as indicated by the ADX. Momentum readings are
also bearish. However, the recent upturn in the difference between the
MACD and the MACD signal line may indicate a short term rally over the
next few days and should be watched. TREND INDICATORS:
Simple Moving Average (10-Day): The closing price finished
below this moving average. Also, the slope of the moving average is in
a downward slope from the previous session indicating further weakness.
As a result the 10-Day simple moving average has a strong bearish bias.
Simple Moving Average (25-Day): The closing price finished
below this moving average. Also, the slope of the moving average is in
a downward slope from the previous session indicating further weakness.
As a result the 25-Day simple moving average has a strong bearish bias.
Simple Moving Average (50-Day): The closing price finished
below this moving average. Also, the slope of the moving average is in
a downward slope from the previous session indicating further weakness.
As a result the 50-Day simple moving average has a strong bearish bias.
ADX: The Average Directional Change (ADX) indicates the
strength of a markets underlying trend. A rising ADX is interpreted as
building trend strength, while a falling ADX indicates weakness in the
underlying trend and the potential of a market reversal. On this
market, the 14-Day ADX is rising, while the long term trend, based on a
50-Day moving average, is down. As the ADX is rising this indicates
that the current trend is strong and should remain intact. Look for the
current trend to continue.
MOMENTUM INDICATORS:
MACD: The MACD is in bearish territory. However, the recent upturn
in the difference between the MACD and the MACD signal line may
indicate a short term rally over the next few days. RSI: The 14-Day RSI is in neutral territory. (RSI is at 42.30).
This indicator issues bullish signals when the RSI line dips below the
oversold zone (currently set at 20.00); a bearish signal is generated
when the RSI rises into the overbought zone (currently set at 80.00).
Nevertheless with the RSI at 42.30 the market is somewhat oversold.
However, this by itself isn't a strong enough indication to signal a
trade. Look for additional evidence of strength from this indicator
before getting too bullish here.
VOLATILITY INDICATORS:
Bollinger Bands (20-Day Average +/-1 Standard Deviation): As
prices are closer to the bottom band than the top band, the Bollinger
Bands are indicating oversold prices. Volatility also appears to be
decreasing, as evidenced by a smaller distance between the upper and
lower bands over the past few sessions. Despite this oversold condition
the market may become more oversold before turning higher. As a result,
the market will look for additional strength in prices before turning
bullish on this indicator.



RESISTANCE AND SUPPORT LEVELS:

14021.95 - Highest High in last 50-Days

13809.24 - 20-Day Simple Moving Average Plus 2 Standard Deviations

13695.82 - Highest High in last 10-Days

13556.74 - 20-Day Simple Moving Average Plus 1 Standard Deviation

13489.94 - 50-Day Simple Moving Average

13430.77 - 25-Day Simple Moving Average

13303.63 - 100-Day Simple Moving Average

13179.69 - 10-Day Simple Moving Average

13132.48 - High

13072.74 - Last Price

13064.28 - Low

13051.73 - 20-Day Simple Moving Average Minus 1 Standard Deviation

12999.20 - 3-Day Simple Moving Average

12846.32 - 200-Day Simple Moving Average

12799.23 - 20-Day Simple Moving Average Minus 2 Standard Deviations

12517.94 - Lowest Low in last 10-Days

12517.94 - Lowest Low in last 50-Days




TradeSignals 2007.