Dow Jones 30
The Dow Jones 30 rallied a bit during the trading session on Wednesday, but rolled over at the 24,850 level. By doing so, we reach down towards the 24,750-level underneath. We have broken down below the uptrend line on the hourly chart, and when I see this chart, I suspect that we may be entering a sideways move that could go through the holidays. However, if we break down below the 24,700 level, we probably go looking towards the 24,500 level. In general, I think that the markets will eventually go higher, but there is no volume in the market currently to make that happen. A breakdown below the 24,500 level would be very negative, but also very unlikely.
Dow Jones 30 and NASDAQ Index Video 21.12.17
NASDAQ 100
The NASDAQ 100 initially tried to rally but found the area above the 6500 level to be far too expensive for traders to hang onto, as we broke down significantly and reached as low as 6450. As a record this though, the buyers have gotten back into this market place and started buying again. The 6500 level above continues to offer resistance, but importantly I think that the overall daily channel continues to be respected. Because of this, it’s difficult to imagine a scenario in which we break out easily, at least not until after the new year starts. With this, I believe we continue to see short-term pullbacks, but every time we pull back, I also suspect that there will be traders willing to step in and trying to drive back towards the 6500 level.
This article was originally posted on FX Empire