Dow Jones 30 Technical Analysis
The Dow Jones 30 has bounced cleanly from the 48,000 level and looks like it is going to try to continue to march higher from here. This has been a relative outperformer recently, as traders focus on the idea of loose money helping manufacturing. Whether or not that actually happens remains to be seen, but that is the theory. The Dow Jones 30 is expected to eventually look toward the 48,800 level, where it topped out recently, and pullbacks continue to be buying opportunities.
S&P 500 Technical Analysis
The S&P 500 continues to cling to the 6,800 level, with the 50-day EMA offering support during the trading session on Tuesday. This again looks like a situation where the market eventually goes higher, but there is not a whole lot going on at the moment. The market appears to be slowly grinding its way into the holiday season, where performance is likely to be lackluster.
That being said, this is still not a market to short. It is one that should grind higher eventually, and after the new year, momentum should pick up as more volume comes into the market. There is no real sign of a long-term breakdown, and it is not until a move below 6,500 that there would be real concern.
For a look at all of today’s economic events, check out our economic calendar.