The Dow Jones 30 remains within its higher value range. However, after opening yesterday’s trading near record highs, the index promptly began to tumble as investors gradually came into the marketplace as they returned from their long holidays. What happened to the optimism which has permeated the trading landscape? Technical traders may want to close their eyes and ears regarding the following viewpoint, but political news surrounding today’s Georgia Senate runoff race is likely causing a whirlwind of bad sentiment short term among investors.
Investors like clarity, and today’s vote for senators in Georgia will have a big effect on the future of the US Congress. Polls trying to give an indication what voters will decide in Georgia are extremely close. Investors do not like cloudy skies, they like clarity, and traders should expect mixed and potentially volatile trading conditions today.
The Dow Jones 30 certainly has the capability to launch higher again and it could happen today, but speculators should be very careful and monitor their positions alertly. The Dow Jones 30 is indicating a slightly stronger open today, but this comes after rather steep loses yesterday which saw the index penetrate below the 30000.00 level momentarily. Traders who decide to participate in today’s market should be careful regarding the amount of leverage they use to ensure that any violent swings in value do not cause devastation in their accounts if things go wrong.
Taking into consideration how close the Georgia presidential vote was, it is rather safe to say today’s Senate vote will also be tight. This raises the prospect that an outcome regarding the vote will not be known at this time tomorrow. Speculators who feel that buying the Dow Jones 30 if it is testing support levels may be making the correct decision based on the belief that the index will eventually climb higher again, but if the voting outcome is not resolved tomorrow it could mean that further market turbulence could develop.
Speculators should expect choppy conditions on the Dow Jones 30. Short-term speculators may be inclined to sell the index today, but they should be very careful and use stop loss and take profits appropriately to guard against reversals which could be generated quickly. Traders who continue to have bullish sentiment and believe that the Dow Jones 30 will firmly establish upwards momentum again may need to be patient near term.
Dow Jones 30 Short-Term Outlook:
- Current Resistance: 30250.00
- Current Support: 30050.00
- High Target: 30360.00
- Low Target: 29890.00
