Dow Jones 30 Price Forecast – Dow Jones Continues to Look For Momentum

Dow Jones Technical Analysis

The Dow Jones 30 has rallied a bit during the early hours on Wednesday as it looks like we are in fact trying to hold a somewhat significant trend line as we are between the 50-day EMA and the 200-day EMA indicators.

A lot of times that means we’re going to see a lot of noise. Overnight, the Bank of Japan suggested that perhaps they’re not as hawkish as they once were and therefore it could create more of a risk on feel. We’ll have to wait and see. It is a long convoluted carry trade story that I am talking about. With this being the case, if we can break above the 50 day EMA, then I think the Dow Jones 30 ends up going back towards the highs.

That would be the proclivity, but you also have to keep in mind that the economy is most certainly slowing down in the United States and sooner or later people will care. I realize that the stock market has nothing to do with the economy and quite frankly ignores it most of the time until it stops ignoring it. Once it stops ignoring it, then things get ugly.

A breach of the 200 day EMA underneath would be a sign that we are going to plunge much lower, but at this point in time, it looks like at the very least, we’re going to chop back and forth, trying to establish some type of short-term range and determine whether or not this trend line and the moving averages can hold.

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