Dow Jones 30 Price Forecast – Dow Jones Continues to Look For Direction in Selloff

Dow Jones Technical Analysis

The Dow Jones 30 fell rather hard in the early hours after the jobs number in America missed quite significantly. Expected to come in at 175,000 jobs added for the previous month, the reported number was 114,000. Because of this risk appetite assets were sold off, but it is worth noting that the Dow Jones 30 is sitting at a crucial area of support.

We are hanging around the 40,000 ish area, which is the top of the previous ascending triangle, and of course, we also have the 50 day EMA in the same neighborhood. It is because of this that we will have to wait and see how the market closes at the end of the session. If it reaches 40,000, that would be a fairly bullish sign. Perhaps traders are banking on the idea that the Federal Reserve is going to come in and bail everybody out.

Remember, that’s the default thinking of the Wall Street trader. They don’t actually take risks with their own money. They take risks with your money. So ultimately, this is a market that is very interested in the 40,000 region. And I think that will tell the story. If we break down below 39,500, I think at that point in time, the correction becomes a little bit deeper.

The best thing to do at this point is just see how it closes at the end of the day, because traders typically will tell you exactly what they’re doing at the end of every week, because, for example, if they want to short the market, they very rarely will do so and then hang on to that position through the weekend, where anything could happen on the Monday open.

For a look at all of today’s economic events, check out our economic calendar.