Dow Price Forecast – Dow Jones 30 Plunges Along With Everything Else

Dow Jones Technical Analysis

The NASDAQ has sold off, the Dow Jones 30 is selling off and the S&P 500 is selling off. So, what we have is a global stock market route that began in Tokyo and will more likely than not continue in New York. As New York opens, there will be people liquidating positions that are now losing money that just about two weeks ago looked like they were ready to take off to the upside.

The Dow Jones 30 might be spared some pain just simply because there are more blue chip stocks here but really at the end of the day it looks like everybody is selling first and asking questions later. This does make a certain amount of sense considering that a lot of this originates in the bond market which is seeing yields crash that means people are running to safety. In this environment you have to believe that the Dow Jones 30 is not something you can buy.

At least not at this point, but I’m always a little bit leery on shorting an index because they’re generally not made Equal weighted. However, it’s a little bit different in this index than it is many others as this one actually is equal weighted. So, the Dow Jones 30 is something you should be watching because it will tell you how stocks in general are behaving, not something like the NASDAQ 100, which is going to be falling apart because Nvidia pushed back the timeline on its latest chip. So, with that being said, I’m using this as an indicator, perhaps when things do stabilize and turn around. I don’t think it’s going to be today though, not with everything that I’m seeing fall apart across the board.

Even gold has sold off in the early hours. So, with that being the case, it’s probably a situation where this becomes one of your more interesting indicators for New York trading. But right now, I think we’re going to try to get down all said and done.

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