Dow Jones 30 Technical Analysis
The Dow Jones 30 looks like it’s going to be a little soft at the open as well, and again, I think this is mainly a symptom of it being so thin and it being the time of year that it is. And therefore, I think you have to look at the 48,000 level as a bit of a floor. We have the 50-day EMA racing towards there as well, so that suggests that we are in fact, going to see support come into the picture sooner or later, and I think the correct way to look at it is sooner. But thinking that people are going to throw a lot of money at the market right before the end of the year is probably a bit foolhardy anyway.
S&P 500 Technical Analysis
The S&P 500 has pulled back just a touch as well, but again, it’s just hovering. It’s not really doing anything that concerns me. I think at this point in time, it’s a simple lack of enthusiasm because most people are more worried about New Year’s. This small pattern that we’ve created over the last two weeks could be considered a bullish flag, but I don’t really need that to tell me this is in an uptrend anyway.
This is an uptrend that’s been very strong since April. We have slowed down a bit here recently, but again, after the type of move we had all year, why wouldn’t we? I think 6,800 continues to be important support, especially now that the 50-day EMA is there and showing up as a potential pseudo trendline.
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