• Dow Jones 30 has been very bullish in the last week or so, but the real question will be whether or not we can continue the overall move higher?
• After all, we are starting to look a little stretched, so at this point in time it is likely that we will have to see a pullback sooner or later.

Ultimately, this is a market that will continue to attract a bit of inflows, as traders are looking forward to the idea of the Federal Reserve cutting rates in September. However, there are a whole plethora of issues out there that people will be paying attention to in order to price concerns in the economic landscape. With this, I think you have to also think about the overall economic conditions globally, as the companies in this index are heavily exposed to macroeconomic conditions, and of course do not operate in a vacuum.

Bullish, But Exhausted

At this point, I think we are starting to see some exhaustion come into the market, and therefore think you need to be cautious about the idea of putting too much money into the market in any one move. After all, this is a market that has bounced straight up in the air since melting down about 2 weeks ago. I think this volatility will continue to be a major issue, and therefore you need to be cognizant of the fact that this is a market that could be very difficult to get your hands around.

All things being equal, this is a market that I think continues to see the 50-Day EMA underneath as a potential support level, right along with the massive trend line that sits right around the 200-Day EMA. The volatility that we have seen jump around has been quite extraordinary, but quite frankly that does make sense when you look at the geopolitical issues, the fact that the Federal Reserve might be cutting rates due to the fact that employment might be an issue in America, and of course anybody who does not live in New York City is aware of the fact that there is a true recession going on.

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