Dow Jones 30 Price Forecast – Dow Jones 30 Continues to Look Strong and Ready to Break Higher

Dow Jones 30 Technical Analysis

The Dow Jones 30 drifted slightly higher in the early hours on Wednesday as we continue to look for a move to the upside. All things being equal, I do think that eventually it happens, but between now and Friday, it could be very noisy or for that matter, lackluster just simply due to the fact that everybody is going to be watching out for the PCE numbers on Friday that the Federal Reserve of course pays close attention to. Regardless, this is a market that is stretched. So, I think you’ve got a situation where a little bit of a pullback probably helps.

I suspect somewhere near the 40,750 level could be support, as it has been important a couple of times in the past. The 50 day EMA is closer to the 40,200 level and is rising. All things being equal, this is a market that I think, although completely overdone, has shown itself to be very bullish and there’s no real reason to fight that at the moment.

The Dow Jones 30 could be a major beneficiary of loose monetary policy, mainly due to the fact that a lot of infrastructure expenditures will go through the stocks in this index. So, keep that in mind. And it does act a little bit differently due to the fact that it is an equal weighted index like all of the other manipulated ones. So, with that being said, this is a market that looks bullish. And I think that gives you an overall outlook for the US stock market.

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