Earnings may not be enough to get the market excited but maybe technicals are.
This is a big week for the Dow Jones Industrial Average. Six out of the Dow's 30 components report their earnings this week: JP Morgan Chase, Goldman Sachs, UnitedHealth, American Express, Intel, and General Electric.
Investors are hoping earnings will help boost the index, which is down since the start of 2014. The hope is that something – anything – will add enthusiasm to the markets.
"I'll give you something to be excited about," says Talking Numbers contributor Richard Ross, Global Technical Strategist at Auerbach Grayson, looking at a one-year chart of the Dow. "I like what I see in this chart."
Ross notes that a couple of times in the early part of 2013, the index touched its 50-day moving average. It then entered a five-month trading range starting in May, when Federal Reserve Chairman Ben Bernanke began hinting that the Fed would taper its then-$85 billion monthly bond-buying stimulus program.
"Now we've broken out from that range and I think we've started a trend which is eerily reminiscent of that trend from 2013," says Ross. "That bodes very well for this market here."
Ross believe the market will use its current 50-day moving average – now at around 16,000 – as support and not break below that price.
"I think that 50-day holds and I'm a buyer on any pullback to that level," says Ross. "I like the Dow here on the short-term and I like it for 2014 as well."
(See: CNBC's Earnings Central)
For CNBC contributor Gina Sanchez, founder of Chantico Global, the market wants to see rising revenue growth for it to be positive.
"Now we're stuck looking for revenue growth," says Sanchez. "That’s the one thing that the market hasn't seen and that's the last thing we need to see before we could really get excited."
Sanchez believes there will be some good earnings numbers from the financial sector and that will translate positively to the markets. However, that may not be enough.
"I think actually the market wants very desperately to be positive," says Sanchez. "If you look around, there are far, far more bulls than bears. I would say the sentiment wants to be positive…. But, I do think that a correction is due."
For Ross, the market sentiment will hold support in the event the index slips from here.
"You don't want to underestimate the power of psychology," says Ross. "The market's supply and demand, ebb and flow, greed and fear – that's what drives prices here. If it's a big round number that stops a decline, I'll take it! That's what technical analysis is all about – market psychology. "
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