Dow Jones Index Fails To Reclaim 34,000 Level Once Again
Dow Jones (INDEXDJX: .DJI) Index is once again trending lower after a strong rally in the last few weeks. The benchmark index has once again failed to break above the key level of 34,000 points. This has led many analysts to believe that the top of this bear market rally could be already in.
On Friday, the US stocks showed a negative sentiment as the benchmark indices like S&P 500, NASDAQ 100, and Dow Jones Industrial Average fell to their fresh weekly lows. There are multiple fundamental factors at play behind this week’s pullback in US equities.
Dow Jones Industrial Average Lags Other Indices
While the NASDAQ 100 index and the S&P 500 index have hit their fresh 52-week highs, Dow Futures have failed to show similar strength. Dow Jones Index attempted to break above its August 2022 high of 34,000 but got rejected every time.
Consequently, the index is now eyeing a deeper pullback despite a pause in rate hikes by the US Federal Reserve. This could be due to the hawkish comments form the Fed Chair, which suggested that the pause in rate hikes is only for this FOMC meeting and that the next meeting may result in another rate hike.
Dow Jones Index Forecast 2023
The following INDEXDJX: .DJI chart reveals a few key levels of demand and supply on the chart. These are also known as support and resistance levels. It is quite evident from the chart that there have been multiple rejections from the 34,000 level.
The latest rejection from the same level has made Dow Jones Index forecast bearish once again. Technical analysis suggests that the bears may now target the 32,600 level once again, which is also May 2023 low. The only way to avoid this bearish outlook is to break above the 34,000 level soon.
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