Dow Jones 30 Weekly Price Forecast – Dow Jones Continues to Grind Higher

Dow Jones 30 Technical Analysis

The Dow Jones 30 initially did pull back a bit during the course of the trading week, only to turn around and show signs of life again. Ultimately, this is a market that looks like it is trying to break out to the upside and continue going much higher, mainly based on the idea that the Federal Reserve is going to come and save everybody by cutting rates. Keep in mind that the Dow Jones 30 is heavily influenced by this, mainly due to the fact that there are a lot of major industrial companies in this index that will benefit directly from stimulus and large projects being constructed.

Furthermore, a market that I think continues to see a lot of buyers on every dip, just mainly due to that central bank behavior. And the fact that we’re in an uptrend and it’s really no more difficult than that. In fact, it’s not until we break down below the 38,500 level that I’d be concerned about the trend. And therefore, I think any pullback at this point in time ends up being looked at as a potential opportunity. The Dow Jones 30 of course is a market that has been in a nice channel, and we are getting somewhat close to the top of the channel. So, a pullback makes sense, but it also offers plenty of opportunity. I have no interest in selling in this market. It’s just far too strong.

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