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Dow Jones Index Rebounds From Fresh Monthly Lows

Dow Jones Index has rebounded strongly after making fresh monthly lows this week. The benchmark index fell to 33,235 points before getting a bounce. The S&P 500 index and the Nasdaq 100 Index are also showing strength this week.

On Thursday, Dow Jones Industrial Average rose by 524 points. This was the biggest single-day increase since January 6. The S&P 500 and Nasdaq 100 indices closed the day with 1.96% and 2.76% respectively. This markets are expected to remain volatile in the next few days as the FOMC meeting approaches.

Strong Tech Earnings Boost US Equities

The recent surge in Dow Jones Industrial Average can be attributed to the recently released earnings reports from the tech companies. Tech giants like Microsoft, Meta and Alphabet beat their top & bottom line expectations which calmed down the prevailing recession fears.

However, the US equities and Dow Jones index still keep facing headwinds due to the growing banking concerns. The First Republic Bank is the latest lender who’s facing financial troubles. The bank recently reported a 40% decline in its deposits during Q1. On Friday, Dow Futures fell by 139 points.

DOW Jones Index Targets 34,000 Level

A look at the Dow Jones Industrial Average chart reveals a few key levels which act as the areas of supply and demand. It is evident from the following chart that the index is currently facing resistance from the 34,200 level. In the coming days, I expect a retest of this level which will be very critical for the whole US stock market.

A reclaim of this level may unlock a huge upside for Dow Futures but it appears to be highly unlikely. Considering the current economic scenario, I expect a rejection from this level or a prolonged sideways movement by the benchmark index.

I’ll keep posting my Dow Futures analysis in my free Telegram group that you’re welcome to join.

Dow Jones Index Chart
Dow Jones Industrial Average