Dow Jones Value Outlook:Dow Jones Value Forecast: Broader Uptrend Stays Intact Regardless of VolatilityThe Dow Jones has been an impressive perfor
Dow Jones Value Outlook:
Dow Jones Value Forecast: Broader Uptrend Stays Intact Regardless of Volatility
The Dow Jones has been an impressive performer among the many three US indices over the previous few months as the continued reflation commerce helps to bolster lots of its constituents. The identical forces which have helped drive the Dow increased have labored to cripple the high-flying know-how shares of the Nasdaq 100 and lots of leaders of the S&P 500. In consequence, the Dow Jones is the one index amongst them that continues to be above its broader uptrend and it may assist the index keep away from deeper declines if volatility continues.
Dow Jones Value Chart: Weekly Time Body (January 2018 – Might 2021)
The trendline in query is derived from the index’s pandemic low in March 2020 and has influenced value all through the time since. Whereas the Nasdaq 100 and S&P 500 have since damaged beneath their respective trendlines, the Dow enjoys a supplementary stage of help derived from varied market peaks all through the final fifteen months. Because it stands, the 2 trendlines converge close to the 34,000 mark and can look to maintain the Industrial Common afloat.
Tips on how to Quick Promote a Inventory When Buying and selling Falling Markets
Wall Avenue (Dow Jones) Consumer Sentiment and Value Chart
With that in thoughts, consumer positioning knowledge might counsel the Dow is in danger. Whereas merchants stay net-short, the variety of merchants net-short has decreased to its lowest ranges since March 2021. Since we sometimes take a contrarian view to crowd sentiment, a flip to net-long might counsel the index will proceed to fall.
Such a shift in consumer positioning may additionally coincide with a trendline break which might successfully open the door to deeper losses for the Industrial Common. Till such a break happens, nevertheless, convergent help close to 34,000 will stay the “line within the sand” for the index. Within the meantime, comply with @PeterHanksFX on Twitter for updates and evaluation.
–Written by Peter Hanks, Strategist for DailyFX.com
Contact and comply with Peter on Twitter @PeterHanksFX
factor contained in the
factor. That is most likely not what you meant to do!nn Load your software’s JavaScript bundle contained in the factor as an alternative.www.dailyfx.com