Dow Jones has a hard time at the 30k level. However, it keeps trying and maintains the series of higher lows intact. Effectively, it means that bulls will keep putting pressure on the round number until it will give way.
The first sign of weakness should come if the Dow breaks 28,900. Such a break means invalidation of the higher lows series and spells trouble for further advances.
FOMC Kaplan Speaks Later Today
Later today, Fed’s Kaplan is scheduled to speak at a conference hosted by the Federal Reserve Bank of Dallas. The focus here would be on any reference to the upcoming FOMC meeting and what the Fed has planned.
The recent announcement of the Treasury that it withdraws some of the stimulus from the market may put pressure on the Fed (or not) to act in December.
Dow Jones Technical Analysis
The chart below speaks of itself. It shows the Dow Jones jump from Election Day. What followed was a new all-time high above the 30,000 level and then only consolidation. Bulls may want to place a pending buy stop order above $30,000 with a stop-loss at 28,900 and targeting a move similar to the move from November 3rd to 30k. More precisely, a 4k points move.
Dow Jones Price Forecast