Dow Jones 30 Price Forecast – Dow Jones 30 Continues to Find Support

Dow Jones Technical Analysis

The Dow Jones 30 rallied slightly in the early hours of Thursday, as we continue to see a lot of noisy trading. That being said, the question then becomes, can we bounce in order to overtake that little bit of a panic session that we had on Tuesday. At this point in time, I don’t know, but I do recognize that we are in a longer term uptrend anyway.

So, I’m not necessarily interested in shorting this market. If we do, in fact, see a bunch of interest rate cuts, and perhaps even stimulus after that there is a high likelihood that the companies in the Dow Jones 30 will be major beneficiaries of this, so it does make a certain amount of sense that the Dow Jones 30 has been strong for some time. If we do break down from here, I think that the 40,000 level would be obvious support, but we also have the 50-day EMA near the 40,350 level that could offer support as well. Breaking above the 41,700 level could open up a much bigger move.

And quite frankly, I think that does happen given enough time, but right now we are trying to work off a lot of the excess froth from the shot higher. Really, at this point, I don’t have a scenario in which I’m shorting the indices, unless, of course, maybe the Federal Reserve starts hiking interest rates, which there’s about a 0% chance of that happening. So with that being said, you have to simply follow the momentum and look for buying opportunities.

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