[ad_1]
All things being equal, I would anticipate that we see a lot of noise.
- The Dow Jones 30, or the Dow Jones Industrial average, has fallen hard during the trading session on Wednesday as we waited for the FOMC statement and of course the press conference afterward.
- When you look at this chart, you can see that I have a triangle drawn out, as we are trying to build up enough inertia to get moving.
Underneath, we have the 50-Day EMA, which of course is a technical analysis indicator that a lot of people will pay attention to. Underneath there, the 200-Day EMA comes into the picture, so I think there’s a big range between those 2 areas it could offer support. If we break down below the 200-Day EMA, the bottom is going to fall out of this market. On the other hand, if we were to turn around and take out the top of the triangle, we could go to the 35,000 level rather quickly. Keep in mind that the Dow 30 is quite often very sensitive to interest rates because it is made up of major industrials, which of course is a good proxy for the entire economy.
Be Patient
All things being equal, I would anticipate that we see a lot of noise. There, but eventually, we will have to make a bigger decision. This triangle will be left on my chart so that I can see whether or not the buyers or sellers are starting to take over. In the meantime, I think you will see a lot of back-and-forth noise, and therefore caution should be used and you should look at this more or less through a short-term chart. Eventually, we probably get some type of movement that we can follow for a bigger trade, but right now there are so many questions out there and it looks like the Federal Reserve is not made it any easier for the rest of us to figure out where we’re going.
A little bit of patience will go a long way, and I think that’s probably the most important thing to pay attention to at this point, as the market is trying to build up the inertia for a huge move, and you will want to be part of it. However, if you try to bet on it now, you are essentially gambling.
Ready to trade our Dow Jones trading signals? Here are the best CFD brokers to choose from.
[ad_2]