Dow Jones 30 Forecast Today - 18/07: Find Buyers (Chart)
Date
7/19/2024 3:07:53 AM
(MENAFN- Daily Forex)
It's hard not to notice that the market continues to shine head and shoulders above many other assets. Quite frankly, we are seeing a massive amount of rotation in the United States due to interest rate expectations, as Wall Street is now thinking that the federal Reserve is going to start cutting rates. If they are in fact going to do that, it should, at least in theory, have people looking toward industrials as it could spur more economic development.
Overextended
At this point in time though, you have to keep in mind that the Dow Jones 30 is overextended and chasing the index all the way up here is a bit dangerous. It's not that the trade can't work, it's just that we have seen quite a huge stretch to the upside. We have recently broken above the top of the ascending triangle, so a pullback to that level is very possible, although it looks like we have plenty of momentum to keep this market running to the upside. In other words, I think the market will continue to be a situation where value hunters continue to jump into this market, but you also need to keep in mind that the market is going to remain very difficult to say the least.
Top Forex Brokers
1 Get Started 74% of retail CFD accounts lose money
In general, this is a market that I think is getting a bit of help from the idea of rotation and the stock market, as traders have gotten out of high flying technology stocks, to go back to“physical things.” We are starting to see traders jump into the Russell 2000 as well, so it just looks like that Wall Street is doing everything it can to continue to push stocks higher, but it just seems as if we are simply focusing on another form of stock or perhaps even various other sectors. This has benefited the Wall Street 30, and I think it continues to do so, but you don't want to chase all the way at this level if you can get an opportunity to buy some type of dip.
Ready to trade the daily stocks analysis ? We've shortlisted the best Forex brokers for CFD trading in the industry for you.
MENAFN19072024000131011023ID1108458120
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.