Dow Jones 30 Price Forecast – Dow Jones 30 Looks a Bit Stretched

Dow Jones Technical Analysis

The Dow Jones 30 pulled back just a bit during the early hours on Friday as we continued to look a little overstretched by the time we closed Thursday. At this point in time, it would not be a huge surprise to see this market pullback, mainly because we are overbought, and of course, we are heading into the weekend, and traders may or may not be comfortable holding risk into that weekend. If we do pullback, I think there’s a good chance that the 50-day EMA comes into the picture to support it near the 39,750 level. If we were to break down below there, then the market is likely to go looking towards the major uptrend line that we have been following since November of 2023.

On the upside, I see a lot of noise between here and the 41,500 level, so while I’m not necessarily bearish, I think it’s going to be difficult for this market to take off to the upside without some type of fundamental reason. Really at this point, I think we’ve seen some euphoria come into the market based on people assuming that the Federal Reserve is going to come in and cut aggressively.

That’s probably not true. And if that’s going to be the case, I think we will continue to see volatility pick up. And in that environment, you have to assume that sooner or later, you get a little too far in one direction and you rip in the other direction. And I think we’re about to see that. It’s not necessarily going to be a selling opportunity, but more or less it’s going to be an opportunity to maybe look for a dip and a bounce.

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