Dow Jones suffered for the last two trading sessions as bears pushed it down a couple of thousand points. After managing to close above 29k for the first time during the coronavirus pandemic, it failed to make a new all-time high as other U.S. indices did.
However, the rejection at the highs comes as only normal. What is encouraging for bulls is that the price reacted at dynamic support and remains in the rising channel. As long as these conditions exist, the Dow Jones index is poised to make a new all-time high.
Light Economic Data
The August NFP report created a lot of volatility on the stock market. While the headline number impressed, the details were not so positive. For instance, despite the unemployment rate dropping below 9%, the number of permanent job losses increased for yet another month.
As such, the Dow Jones and the USD traded without direction – the initial move higher in the USD was followed by a quick reverse.
The week ahead is full of light economic data. The economic calendar shows that the CPI in the United States is the only important economic data to consider from the United States. As such, the focus for the Dow Jones traders shifts to what is happening with the USD and to any news out of the Presidential election race.
Dow Jones Technical Analysis
The Dow Jones index is on a rising trend since July. For the entire summer, it formed a series of higher highs and higher lows, typical for such trends.
It recently found support at the lower edge of the channel, while the series mentioned earlier remains intact. Bulls were expected to step in – and they did.
A bullish strategy for Dow Jones requires a stop-loss order below 27,000. If the market manages to hold above the level, new all-time highs come sooner rather than later.
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Dow Jones Price Forecast
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