Dow Jones 30 Technical Analysis
The Dow Jones 30 has gone back and forth in the early hours on Tuesday as well, with the look of a market that is trying to figure out what it wants to do next as we are pressuring a significant resistance barrier in the form of 43,000. If we can take out 43,000 and continue to go higher, then we could go looking at 43,500. We’ll just have to wait and see how that plays out. But right now, it looks like a buy on the dip market, with 42,000 below being a significant short-term support level, not only due to the fact that it is a large round number, but it also features the 50 day EMA and the 200 day EMA indicators.
S&P 500 Technical Analysis
The S&P 500 continues to chop back and forth as we try to find some type of momentum. We are hanging out just above the crucial 6,000 level. So, the fact that we are above it is a good sign. But again, I think we’re waiting for the CPI figures to come in now to put any real money to work. We’ll just have to wait and see. We do have a lot of supply between here and 6,120, so we’ll pay attention to that as well.
But I believe that the S&P 500, right along with the other indices in the United States, will continue to be more or less a buy on the dip type of situation. I have no interest in shorting stocks after the recent run up. After all, we had fallen apart and bounced to the top, almost as quickly as we fell apart, which is actually fairly uncommon, this tells me that the market at least wants to go higher.
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