Dow Jones Daily Forecast – Dow Jones Continues to Look Strong

Dow Jones Technical Analysis

The Dow Jones 30 rallied right away on Monday as we continue to see a bit of rotation into the industrials sector. That being said, I believe the Dow Jones 30 will end up being a big winner. And I do believe that eventually it will go back to recent highs near the 41,500 level. Short-term pullbacks should continue to attract a certain amount of attention as this is an index that’s definitely outperformed.

And if you look at it, you can see that the recent action had been an ascending triangle. And with that being said, it’s worth noting that traders continue to look at this through the prism of a breakout, pullback, and then continuation.

That’s what we’ve seen over the last two or three trading sessions and as a result, you would have to assume that there is still a lot of technical momentum underneath this market. If interest rates continue to fall, that will also help this market go forward.

At this point, I think this is an index that should lead the US, as the tech bubble continues to deflate. It isn’t that the technology stocks cannot rally, but we are starting to pay attention to the broader economy as well. As things stand now, the Dow Jones 30 has been ignored for what seems like a lifetime, so a “catch up phase” would also make a lot of sense.

For a look at all of today’s economic events, check out our economic calendar.