The Dow Jones 30 appears ready to move higher when the index opens for trading as the Christmas holiday approaches.
The Dow Jones 30 has produced choppy trading the past couple of weeks as investor sentiment continues to get tested. However, the Dow Jones 30 has also been able to maintain its rather lofty values, and the index does seem to have the ability to remain above the key psychological level of 30000.00. Before the Christmas holiday is delivered tomorrow, investor sentiment should be taken into consideration carefully.
Resistance levels for the Dow Jones 30 remain rather strong near 30200.00, but if the index can see a sustained amount of buying today, the possibility exists that investors may go into the holiday with a rather optimistic attitude. A test of the 30300.00 level is not out of the question today, but traders targeting this height and lucky enough to find profitable trades within their accounts may be better off simply cashing out winning positions if they emerge before this level is legitimately tested.
As Wall Street prepares to close for the Christmas holiday, trading sentiment seems ready to be confronted. President Trump has threatened to not sign the new stimulus bill which has been approved in Congress, saying he wants more money to go to citizens and has said he will veto the legislation unless it is improved. However, Congress on both sides of the political aisle may be ready to confront Trump and possibly override his decision early next week if they face that challenge.
Also battling for the attention of investors before they escape for the holiday are reports that the UK and EU may have finally achieved a Brexit agreement. News of a trade agreement between the UK and EU could cause optimism to creep into US equities. Speculators should monitor the Dow Jones 30 upon its opening today and be ready to take advantage of emerging trends which may develop.
Trading volumes could be very light on the Dow Jones 30, but if investors decide to participate before the onset of the holiday, they may decide to be buyers in anticipation of positive political news developing over the weekend. Traders need to be careful because of the battle for sentiment ready to play out in the US markets short term, but they should also remember that the bullish trend of the Dow Jones 30 remains tactically robust mid-term, and this may translate into higher values sooner rather than later.
Dow Jones 30 Short-Term Outlook:
- Current Resistance: 30200.00
- Current Support: 30090.00
- High Target: 30300.00
- Low Target: 30000.00