Dow Jones 30 Forecast – Dow Jones 30 Continues to See Support

Dow Jones Technical Analysis

The Dow Jones 30 was slightly positive in the early hours on Friday as we continue to hang around the 41,000 level. The 41,000 level of course has been important previously, so it’s not a huge surprise to see that we have stalled in this area. All things being equal, this is a market that I think is trying to break out to the upside, but we have the Jackson Hole Symposium during the trading session on Friday, and of course the statement coming out of that will have a major influence on what traders think is going to happen with monetary policy. He, being Jerome Powell, will give a speech and will probably try to walk the line, but short-term pullbacks I think would make a lot of sense from here, as we could be thought of as overstretched.

The 50 day EMA is near the 40,000 level. So, I think that’s your short-term floor. If we do break out to the upside, then I would probably aim for the 42,500 level above. All things being equal, this is a market that I think has been very choppy and the volatility probably only gets worse from here as we are starting to see a lot of questions asked about the US economy and of course, inflationary headwinds, employment, etc. etc. So, I think it remains very noisy, but I do believe that there are plenty of buyers underneath.

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