Dow Jones 30 Price Forecast – Dow Jones Continues to See Volatility

Dow Jones Technical Analysis

The Dow Jones 30 initially fell a bit during the early hours on Wednesday, but then turned around to show signs of life and in this scenario, it suggests that perhaps the market might try to recover after that nasty sell-off during the Tuesday session. The $40,800 level underneath could be a significant support level based on previous action, so I will be watching that area as well. On a turnaround, then we could be looking at a move all the way up to the $41,700 level. This is an area that could be a bit difficult to overcome, at least not without some kind of fundamental catalyst for doing so.

A breakdown below the $40,800 level then opens up the possibility of a drop down to the 50-day EMA and that is very possible considering just how volatile the markets are suddenly. The interest rate situation in America I think has got ahead of itself as far as how many cuts traders expect and therefore, we may be seeing a little bit of that come into play.

Plus, we also had problems with Chinese demand showing signs of weakness over the weekend. So, it all ties together for a market that probably has a few shocks ahead of it. That doesn’t necessarily mean that I would be a seller of this market. It just means that you’re going to have to tread very lightly.

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