Dow Jones 30 Technical Analysis

The Dow Jones 30 has been very sideways in general during the trading session on Wednesday so far, which does make a certain amount of sense considering that we continue to work off the froth from the move higher. Short term pullbacks at this point in time, I do think will offer plenty of value that people are willing to take advantage of. To the upside, the market should continue to see the 42,500 level as a potential target. This is an area that has been important recently, so I assume it will be again when we reach it.

Underneath current trading, the 41,600 level comes into the picture as potential support, as it was massive resistance previously. The 50-day EMA sits right by the 41,600 level, so I think it’s probably a situation where traders will continue to look at each and every dip as value. The Dow Jones 30, of course, will continue to be a proxy for risk appetite.

And I do think ultimately, we’ve got a scenario where value hunters will come in and pick it up. But even beyond that, I think given enough time, we overall are going to continue the longer term trend, perhaps driving towards the 45,000 level. This is a large, round number that a lot of people will be paying close attention to, assuming we can get there.

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