Dow Jones 30 Price Forecast – Dow Jones 30 Continues to Grind Away

Dow Jones Technical Analysis

The Dow Jones 30 initially pulled back just a bit during the early hours on Tuesday, but then turned around to show signs of life. All things being equal, this is a market that continues to be so much sideways as we work off a lot of the froth that we had seen previously. All things being equal, the 41,600 level underneath continues to offer a bit of a floor underneath there, as have the 50 day EMA reaching towards that area. And I think given enough time, we will see plenty of buyers opening up new positions based on value.

If we can break to the upside, the 42,750 level, I think at this point in time is a short-term ceiling. Anything above there then opens up the possibility of a move to the 45,000 level. The Dow Jones will of course get a bit of a boost due to the reason that the liquidity measures should continue to play a major part here.

After all, the Federal Reserve is looking to cut rates and the Dow Jones 30 is chock full of companies that will benefit from an environment where cheap monetary policy floods investment and not only through the stock market, but venture capital as well. So, it all comes together for higher stock prices. I like the idea of buying dips. I have no interest whatsoever in shorting the Dow Jones 30 anytime soon.

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