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

Dow Jones Technical Analysis

The Dow Jones 30 of course has gone back and forth during trading here on Tuesday in the early hours and at this point in time we are threatening the 50-day EMA. If we can break from that, it opens up the possibility of a move to the 40,000 level again. Anything above there could open up another move to the 41,000 level. It’s worth noting that recently a trend line has been held, and that of course will give the bullish traders out there a little bit of comfort. After all, the market recently has seen a bit of a panic, so to stabilize is a good thing. However, we need to break above this 50-day EMA sooner rather than later, or this could just end up being sideways consolidation.

That is a very real threat. And the reason I say that is this is the time of year when a lot of volume seems to dry up. Most of the larger traders are away on vacation, typically. Whether or not that’s going to be the case this year might be a different story, just simply due to the fact that there has been so much volatility. Perhaps people are not taking vacations, but either way, as we are trading between the 50 day EMA and the 200 day EMA, a lot of noise would be expected. Speaking of the 200 day EMA, if we were to break down below it, which is roughly at the 38,250 level, I think at that point in time the Dow Jones 30 really starts to crater and probably drops pretty significantly.

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