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

Dow Jones Technical Analysis

The Dow Jones 30 initially tried to rally a little bit overnight, but it has pulled back just enough to show signs of hesitation. Ultimately, this is a market that I think you need to look at through the prism of buying dips because obviously we’re very bullish and traders continue to focus on the idea that the Federal Reserve could cut rates again, and that tends to help blue chip stocks. Furthermore, some traders are now concerned that the Federal Reserve is not going to cut rates enough, and then therefore they want to put money into dividend paying stocks, which the Dow Jones 30 has plenty of.

From a technical analysis point of view, we are bullish. A pullback should see plenty of support just below the 42,000 level. And the 50 day EMA is at 41,500 racing towards that area as well. So, it all ties together quite nicely. In fact, until just a couple of sessions ago, we were going sideways, working off some of the froth from the major move higher, which is classic uptrend behavior and with the Dow Jones 30 being so bullish, I just don’t see a scenario where you would start shorting it anytime soon.

If we were to break down below the 50-day EMA, then it’s possible that we might get a deeper correction but really, I think ultimately any short-term pullbacks will get bought into rather quickly. The target at this point is pretty open, but I certainly think we will get to the 43,000 level sooner rather than later.

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