Dow Jones 30 Price Forecast – Dow Jones 30 Stabilizes on Tuesday

Dow Jones 30 Technical Analysis

The Dow Jones 30 initially pulled back just a bit during the course of the trading session, only to turn around and show signs of life. All things being equal, the market did on Monday bounce from the 50 day EMA and now on Tuesday we find ourselves somewhat quiet. I think this is a market that will eventually go looking to the 41,500 level again, an area that caused quite a bit of resistance. In the short term though, we may get a little bit of sideways action as we’re just above the 50 day EMA, but it’s probably worth noting that traders are

Waiting to see CPI on Wednesday and PPI on Thursday. I don’t know how much that influences the market though, because everybody is focusing on the Federal Reserve right now. And while you can read through some of that, those numbers have been incredibly nonsensical and noisy. And it looks like the Federal Reserve is finally starting to come around to the idea of bailing everybody out on Wall Street again.

And that, of course, is good for stocks, not so much for the economy, but stocks will do quite well. So, what happens is people put money into the stock market to protect some type of purchasing power. And I think we’re about to enter one of those phases. So as long as we stay above the 50 day EMA, I think it’s very likely we will attack the highs again. Even if we break down below the 50 day EMA, the 39,700 area should offer support as well.

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