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

Dow Jones Technical Analysis

The Dow Jones 30 pulled back just a bit during the early hours on Thursday as we continue to see a lot of noise in this market and it’s probably worth noting that the candlestick from the previous session on Wednesday was very strong. A short term pullback will offer a little bit of value that people will be looking to jump in. The 42,250 level underneath, I think is a support level. After that, the 41,600 level is going to be massive support as well. And in fact, it was previous resistance, and it also has the 50 day EMA running towards that as well, offering a little bit of support and of course value that people will be jumping all over.

The Dow Jones 30 is going to continue to see a lot of choppiness, but I do think at the end of the day, what everybody will be focusing on is the fact that the Federal Reserve cut interest rates by 50 basis points recently, and that should in turn have a lot of money flowing into the stock market as traders have to find a better return than bonds. Keep in mind that the Dow Jones 30 is chock full of companies that pay dividends, so that also covers some of the interest that you would have gotten from the bonds as well.

So I do think everything aligns up pretty much for the Dow Jones 30 to continue to find buyers. And quite frankly, I do think that we get to the 45,000 level before too awfully long, although the last couple of weeks have more or less been about digesting the recent surge higher.

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