The Dow Jones Industrial Average is taking a breather after soaring to new all-time highs earlier this month. Despite a pullback from the 37,641 level, the Dow Jones index is still trading above its 2022 peak, which shows that there is significant demand for the US blue-chip stocks at current levels.
After the Christmas holiday, the US markets will open tomorrow, on Tuesday. It will be very interesting to see how the markets react, as DJI has already closed eight consecutive weeks in green.
Due to the holiday season, the volume is expected to remain low in the markets this week. However, it is still not certain if the same can be said about volatility.
While Dow futures are consolidating close to their highest level in history, the S&P 500 index and Nasdaq 100 index seem to be lagging. This shows that investors still prefer low-risk equities compared to high-risk sectors like tech stocks.
Dow Jones index forecast seems to be pretty straightforward. The outlook will remain bullish as long as the index remains above its January 2022 high of 36,952 points. Therefore, every dip can be considered a buying opportunity. However, a break below this key level and acceptance might result in the formation of a double-top pattern, which must be kept in mind.
