Dow Jones 30 Technical Analysis
The Dow Jones 30 finds itself pressing against that 43,000 level. If we can get above 43,000, then we could go to 43,500 and beyond. This is a little bit of a laggard, and it might make a little bit more sense due to the fact that a lot of the tariffs will directly influence what goes on with some of the bigger blue chip companies.
Now, having said that, it still looks like a market that’s doing everything it can to break through this barrier and once it does, you’ll probably get a bit of a short squeeze. Pullbacks at this point in time should be buying opportunities with the 42,000 level offering significant support not only due to the psychology and the previous action but the moving averages, both the 50-day and the 200-day EMA, sitting just below it, which by the way just crossed to form the so-called golden cross.
S&P 500 Technical Analysis
The S&P 500 finds itself above the 6,000 level. And at this point in time, I think we’re just somewhat in a holding pattern. I do think we will eventually test the highs again. I mean, at this point, we’ve come so far, why wouldn’t we? But I also recognize that short-term pullbacks are very likely just due to the grinding nature of the recent part of the rally. A little bit of exhaustion would make a certain amount of sense, but I think the 5800 level continues to be a major area to watch underneath for trend direction. As long as we’re above that level, I look at each and every pullback as a potential buying opportunity.
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