Dow Jones 30 Price Forecast – Dow Jones Continues to Look For Higher Levels

Dow Jones Technical Analysis

The Dow Jones 30 has shown itself to be lackadaisical over the last couple of days as we are hanging around just below the 41,000 level. This of course is a large round psychologically significant figure, and it does make a certain amount of sense that there could be a bit of a hesitation. With that being said, I think you’ve got a situation where traders are looking for some type of pullback in order to find value and just don’t have it yet.

When I look at this chart, the first thing I notice is that there is a lot of noise between 41,000 and the 41,500 level. If we can finally break through that, then I think the Dow Jones 30 goes much higher. As things stand right now, I think a lot of people are banking on federal reserve rate cuts, but the question then becomes, what’s the recovery like after a rate cut in the economy?

Quite frankly, the numbers are pretty dire, and it’s very likely the Fed may have fairly steep cuts in front of them. And while traders initially want to celebrate that, quite often that means they’re behind the curve and that typically means bad things. So, I do think eventually we get a vicious pullback again, but right now I think you’re just looking for a short-term pullback and a bounce to get involved again in a market that’s obviously bullish. At that point, we should see plenty of value hunters.

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