Dow Jones 30 Price Forecast – Dow Jones 30 Continues to Look Strong

Dow Jones Technical Analysis

The Dow Jones 30 rallied slightly during the early hours on Friday as the market looks likely to continue to see more of a buy on the dip type of situation. With this being the case, I think you’ve got a scenario where traders continue to see short term pullbacks occasionally just due to the volatility. But what I would pay special attention to is the candlestick from the Wednesday session when we plunged only to turn around and show signs of strength.

That turnaround, which ended up forming a bit of a hammer, does suggest that we have more momentum coming into the market. We have, in fact, seen that play out over the next two candlesticks. At this point, if we can break above the recent swing high right around the 41,630 level, then we probably start to focus on the 42,000 level.

Overall, though, this is a market that I think is paying close attention to the idea of interest rate cuts because a lot of the Dow Jones 30 will be direct beneficiaries of cheaper money out there. Keep in mind that this is an equal weighted index so it’s a fairer representation of what’s going on in the stock market in America and therefore things look pretty good, at least at the moment. With this being the case, I think you’ve got to look at this market as one that could be a leader as far as risk appetite is concerned in the United States.

For a look at all of today’s economic events, check out our economic calendar.