Dow Jones 30 Technical Analysis
The Dow Jones 30 looks very much the same in the sense that it doesn’t really have anywhere to be, but I am watching the 49,000 level underneath. It is a large, round, psychologically significant figure that I think a lot of people will be watching, as it was previously resistant.
The 50-day EMA is now crossing above the 48,000 level. I think for the medium-term trend, that is your line in the sand, as it were. I think we are probably going to see 50,000 fairly soon. It’s just that we need some type of catalyst.
S&P 500 Technical Analysis
The S&P 500 has been noisy early during the trading session, but as you can see, the market still has an upward tilt to it. I think it’s probably only a matter of time before we reach 7,000 and probably break above there. Once we do, I would anticipate more algorithmic trading jumping on the bandwagon.
I look at pullbacks as buying opportunities with the 50-day EMA offering a bit of support. The 6,800 level underneath there I think, is your floor in the market for the time being. I am bullish on the S&P 500, and I think most other people are as well.
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