Dow Jones 30 Price Forecast – Dow Jones Sits at Extreme Highs

Dow Jones Technical Analysis

The Dow Jones 30 is sitting still on Monday as you would anticipate. It is Labor Day in the United States after all, but really what we are looking at here is a situation where the market is at a fresh new high and it’s likely to continue going higher over the longer term. Short-term pullbacks seem to be buying opportunities every time we get one, and really at this point in time, I think you will continue to see more of the same. I believe that the 41,000 level underneath is significant support as it is a large round psychologically significant figure and an area that has been tested a few times in the past.

To the upside, the $42,000 level probably ends up being a bit of a short-term barrier based on the psychology, if nothing else. Stocks are a bit stretched at the moment, and that of course includes the Dow Jones 30, so that’s why I’m thinking more along the lines of buying dibs than trying to jump in and chase it right here. At the very least, I suspect we need to work off some of the froth by going sideways and grinding.

But I also recognize that we are more likely than not to find plenty of people willing to gamble on the idea that the Federal Reserve is going to cut enough to make stocks rocket higher again. The Federal Reserve certainly seems to be cutting in September and of course doing everything it can to lift stock prices on Wall Street.

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