Dow Jones (INDEXDJX: .DJI) Index is experiencing a strong rebound from the May 2023 lows. The index dropped to its fresh two-month lows in May amid a debt ceiling crisis. However, with the issue getting settled now, the benchmark index has been rising since last week.
Dow Jones Industrial Average (DJI) closed Wednesday’s trading session after rising by 0.27%. On Thursday, Dow futures were trading sideways till the start of their London session. The rise of DJI on Wednesday was surprising as the Nasdaq 100 index and the S&P 500 index both closed in the red.
Dow Jones Industrial Average To Remains Volatile This Week
This week started with a negative sentiment as the Dow Futures tanked on Monday. However, the index made a comeback and closed the next two trading sessions in green. The strength in DXY index has been acting as a strong headwind for the US equities for the past few weeks.
I expect the Dow Jones index to remain volatile till next week as the US Federal Reserve is set to decide the fate of interest rates on June 14. Before the upcoming FOMC meeting, the CPI report for May 2023 will also be released, which will disclose the inflation stats for the month.
Dow Jones Index Targets 34,000 Level
Technical analysis of INDEXDJX: .DJI reveals that the index has bounced off the 200-day moving average, which also coincided with the December 2022 lows. Considering the momentum of this bullish push, the bulls may target the 34,000-34,200 level in the coming weeks.
However, my Dow Jones Index forecast will remain bearish as long as the index remains below the 34,200 resistance. A reclaim of this resistance will be very bullish for the higher timeframe outlook. The next week’s FOMC meeting will play a key role in this regard as many analysts expect the Fed to pause rate hikes after another hike.
I’ll keep posting my updated outlook on Gold and other assets in my free Telegram group, which you’re welcome to join.
