Dow Jones 30 Price Forecast – Dow Jones 30 Attempts to Stabilize

Dow Jones Technical Analysis

The Dow Jones 30 has been somewhat stable during the early hours on Tuesday, which of course is a good thing, considering just how negative the last three trading sessions had been, but at this point in time, we are hanging around a major trend line, and we are hanging around the large round psychologically significant figure of 39,000. That being said, it has bounced a bit to get here late in the day on Monday, and therefore it shows that we are at least trying to absorb some of that selling pressure. The market is currently between the 50-day EMA and the 200-day EMA indicators, which of course is an area where you see a lot of action most of the time.

So, the question is, can we recover? I think it’s a little early to start throwing money into the market, at least with any size. Yes, we could very well turn around and rally from here, but at this point in time, I think if you were to get involved, you have to use small positions. If we were to turn around and break down below the 200-day EMA, then I think the market probably falls apart. I do recognize that there are a lot of people out there begging for the Federal Reserve to cut interest rates. And whether or not they do quickly enough for the market remains to be seen.

Typically, the biggest concern that I hear is that traders believe that the Federal Reserve is behind the curve when it comes to monetary policy, which would be the same as every other cycle. So, I don’t see that as being even a relevant topic of conversation. If we get an impulsive day to the upside, then it becomes a little bit more impressive and therefore buyers might be a little bit more comfortable. But right now, it’s almost as if it’s a wait around and see type of situation.

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