Dow Jones Rangebound Fibs 23.6%-38.2%
Still no major change in the market outlook with the Dow Jones Industrial Average(DJIA) being rangebound between the 38.2% and 23.6% Fibonacci levels for the past 6 days, and looks to test lower support at the 23.6% Fib today. The expected move here is still a push below the 23.6% as the coronavirus continues to weigh heavily on the economy, especially with the Trump administration no longer talking about a re-opening of the economy by Easter and have pushed the date back to May. This still seems like an unrealistic goal and odds are the date will be pushed back even further once we near the end of April.
The Relative Strength Index(RSI) has begun to roll over after failing to move above its centerline at the 50 level, which is the midpoint of the total RSI range. Above 50 indicates a bullish trend for price while an RSI reading below 50 indicates a bearish trend.
The Price Percent Oscillator(PPO) is still rising, but remains below the 0 level which indicates that price still has bearish momentum overall. I expect to see the green PPO line cross back below its purple signal line going forward indicating a return to short-term bearish momentum.
Short-term view of the Dow Jones has shifted from a few days of being neutral back to bearish with the opinion that we have yet to see the end of the selloff or the worst of it yet. Major economic data to be released this week are PMI(purchasing managers index) and another expected unemployment claims number in the millions, possibly higher than last week’s all-time record which showed 3.2 million workers filing for unemployment.
The Relative Strength Index(RSI) has begun to roll over after failing to move above its centerline at the 50 level, which is the midpoint of the total RSI range. Above 50 indicates a bullish trend for price while an RSI reading below 50 indicates a bearish trend.
The Price Percent Oscillator(PPO) is still rising, but remains below the 0 level which indicates that price still has bearish momentum overall. I expect to see the green PPO line cross back below its purple signal line going forward indicating a return to short-term bearish momentum.
Short-term view of the Dow Jones has shifted from a few days of being neutral back to bearish with the opinion that we have yet to see the end of the selloff or the worst of it yet. Major economic data to be released this week are PMI(purchasing managers index) and another expected unemployment claims number in the millions, possibly higher than last week’s all-time record which showed 3.2 million workers filing for unemployment.