Dow Jones 30 Technical Analysis
The Dow Jones 30 has pulled back just a touch during the early hours here on Monday as well, as we formed a little bit of a potential double top, but I wouldn’t read too much into it. I do think that this market eventually goes looking to the 49,000 level. Short-term pullbacks are buying opportunities, with the 48,000 level underneath being a massive floor in the market.
Ultimately, I do like buying short-term dips that bounce so that I can jump into the momentum and follow right along with the overall uptrend that has been a major factor here for some time.
S&P 500 Technical Analysis
The S&P 500 has also pulled back ever so slightly during the early hours here on Monday, as we have a potential buy on the dip situation here as well. Furthermore, keep in mind this is the last week of the year, so we will see how that plays out because, of course, markets will be thin.
But we just touched the all-time high, so there’s no reason to think that there is some type of major issue here. The 6,800 level would probably be, support right along with the 50-day EMA if we even get anywhere near there. I do think again, this is a buy on the pullback type of situation where you are buying into the bounce, and sooner or later, we will challenge 7,000.
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