Dow Jones Technical Analysis

The Dow Jones 30 is fairly quiet in the early hours on Wednesday as markets are waiting for the latest inflation numbers in this case CPI but really at this point in time, I think you’ve got a situation where we are trying to do everything we can to rally. Whether or not it’s sustainable remains to be seen, but one would have to assume looking at the chart, that the odds do favor that we will eventually bounce. That being said, if we break down below the 39,250 level, then I think we go crashing into the trend line that previously has held the market up multiple times, and then.

After that, we have the 200-day EMA. The 200-day EMA indicator is a massive one that a lot of people pay close attention to. If we break down below there, then the market is likely to go much lower. On the other hand, if we rally from here, we could go looking to the 40,000 level. If we can break above the 40,000 level, then the market is likely to go looking to the 41,300 level again, which is near where we struggled the last time. I think you should make your decisions in this market based on daily closes and based on the one during the previous session, breaking above the 50 day EMA and just sitting here, as long as the CPI numbers are not too out of kilter, this is a market that should continue to look to the upside.

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