The Dow Jones Industrial Average has posted the 4th day of strong gains on the back of a strong factory orders number, which surprised to the upside. Factory orders grew 1.1% in January, which was better than the 0.7% that analysts had predicted for this data set.
Also lending support to the bulls on the Dow was the better-than-expected initial jobless claims figure, which came in at 779K (versus the consensus of 828K). This number was also lower than the previous week’s figure of 812K, which was a downward revision.
The Dow Jones index is currently up by 0.56% or 170 points.
Technical Outlook for Dow Jones
The Dow Jones index is riding a bullish wave that has seen it clear the 30585 price level, which was the only barrier standing between bulls and the recent all-time highs at 31288. This level appears to be the new target. A break of this level extends the Dow’s uptrend and sends it towards new record territory, where 32505 (100% Fibonacci extension of 14 May to 2 September) may form a barrier.
On the other hand, a rejection at 31288 could precipitate a profit-taking sequence, which could send the Dow back towards 30585. A breakdown there opens the door towards 30358 and 30101 respectively.
Dow Jones Daily Chart