Wednesday’s Technical Outlook For DJIA (.DJI)
Tuesday, the US economic data boosted the markets instead of creating fears of potential of Fed rate hikes. The better than expected manufacturing data and higher construction spending triggered a worldwide short covering move.
The DJIA finished at 16865.08, or +2.11% rallying towards Key reistance at 17000, and now it remains to be seen if any Bullish fatigue set in 17000-200. Major support now comes in at at 16500.
The DJIA or simply the Dow, is a stock market index, and one of several indices created by Wall Street Journal editor and Dow Jones & Company co-founder Charles Dow.
The DJIA was 1st calculated on 26 May 1896.
Currently the DJIA is owned by S&P Dow Jones Indices, which is majority owned by McGraw-Hill Financial, it is the most notable of the Dow Averages, of which the 1st (non-industrial) was 1st published on 16 February 1885.
The averages are named after Mr. Dow and one of his business associates, statistician Edward Jones.
It is an index that shows how 30 large publicly owned companies based in the United States have traded during a standard trading session in the stock market.
The Stochastic Oscillator
The theory behind this indicator is that in an upward-trending market, prices tend to close near their high, and during a downward-trending market, prices tend to close near their low. Transaction signals occur when the %K crosses through a 3-period moving average called the “%D”