Dow Jones 30 Technical Analysis
The Dow Jones 30 initially rallied a little bit during the session overnight but then gave back the gains. We are simply consolidating at this point, and it does make a certain amount of sense that we will continue to pay close attention to the 45,000 level. The 45,000 level, of course, was previous resistance, so it would make a certain amount of sense that we should see it as support based on market memory.
I do like the idea of buying pullbacks and we will just simply have to wait to see if there is a correction here, but 45,000 is an area where I think you find a lot of value. If we break above 45,750, then maybe we go looking to 46,000 and beyond, but right now it looks like we aren’t in a huge hurry to go anywhere.
S&P 500 Technical Analysis
The S&P 500 has shown itself to be pretty choppy overnight in electronic trading as we continue to focus on the 6,500 level as massive resistance. If we can break above the 6,500 level, then it opens up the possibility of a move to the 6,600 level. Short-term pullbacks, I think, are very possible, all the way down to about 6,350, where at that point in time, we’ll start to focus on the 50-day EMA. Again, I expect some type of correction sometime in the next several weeks. But I don’t think it’s going to be life altering or trend changing. I just think that we are getting a little tired.
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