Dow Jones 30 Weekly Price Forecast – Dow Jones 30 Pulls Back For The Week

Dow Jones Technical Analysis

During the past week, the Dow Jones 30 has fallen pretty significantly during this time as we are pressuring the 40,600 level at the beginning of the Friday session. All things being equal, I think this is a market that continues to see support underneath though. It’s just that it got a little stretched.

With the Federal Reserve likely to cut interest rates in the month of September, it doesn’t make a certain amount of sense that the Dow Jones 30 and other indices in the United States continue to find buyers, but liquidity can only do so much. We have to ask questions about the underlying economy, and we are starting to see some cracks in that, so it’ll be interesting to see how this plays out. The uptrend line from the beginning of the year and into last winter is still holding, and we’re not anywhere near it, that would be your cue for something a little uglier happening somewhere around the 39,300 level.

As things stand right now though, we have plenty of areas underneath that could offer support including the 40,500 level, and then again at the 40,000 level. It is a buy on the dip market as things stand, and it’s probably worth noting that if we do get some type of massive stimulus and interest rate cuts, the industrial companies that make up the Dow Jones 30 will be some of the biggest beneficiaries and that might be part of what’s kept this market fairly strong over the last year.

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