Dow Jones 30 Price Forecast – Dow Jones Pulls Back in Early Hours on Wednesday

Dow Jones Technical Analysis

The Dow Jones 30 has pulled back just a bit during the early hours on Wednesday, but at this point in time, the 50 day EMA is an indicator that shows a lot of support over the last couple of days. If we were to break down below the 50 day EMA and the 40,400 level, then we could start dropping pretty significantly. On the other hand, if we were to turn around and break above the 41,000 level, then I think we have a shot at getting to the 41,630 region where we had peaked previously. Keep in mind that the CPI numbers come out later in the day and the PPI numbers come out on Thursday.

Both of these could have an effect on the Dow Jones 30, but really at this point in time, I think you’ve got a situation where traders will continue to look at this through the prism of trying to find value on these dips. While we do know that the Federal Reserve is likely to cut the interest rate by 25 basis points later this month, the reality is that does help stocks. And if we get some type of stimulus coming with that, it’s possible that the Dow Jones 30 will be one of the first places money flows to.

Keep in mind, this index moves a little bit different than some of the other ones because it is equal weighted. So, this is a true representation of what the 30 stocks are doing. It looks like we are trying to find our footing and perhaps continue the overall uptrend.

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