Dow Jones 30 Price Forecast – Dow Jones 30 Pulls Back Slightly in Early Hours

Dow Jones 30 Technical Analysis

The Dow Jones 30 has fallen a bit during the trading session in the early hours of Tuesday, and we have perhaps gotten a little bit stretched at this point. It is worth noting that Monday, of course, was Labor Day in the United States. So, we were closed. So, the little bit of action that you’ve seen on your charts has been overnight electronic futures trading influencing the CFD market. That being said, we are stretched, and a pullback does make a certain amount of sense. I don’t necessarily think this is going to be a major sell off. I just think that we might get an opportunity to get involved in this market at a lower level.

If that’s going to be the case, then the 41,000 level would be a prime candidate for support. Underneath there, we have the 50 day EMA near the 40,300 level. And then after that, you have a major uptrend line, which is actually below the 40,000 level. All things being equal, the market is stretched as we had rallied so viciously over the last couple of weeks. So, it does make a certain amount of sense that we might have to go sideways or even pull back in order to digest those gains.

Given enough time, I do think we break above the 41,700 level and go looking to the 42,000 level. The Federal Reserve interest rate cuts, of course, have everybody excited. And I do think that it is probably only a matter of time before traders come in to pick up the market based on the idea that more liquidity will be thrown into the financial system.

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