Dow Jones Forecast Today 06/01: Volatile Week (Chart)
(MENAFN- Daily Forex)
In my analysis of major indices around the world, I always take a look at the Dow Jones 30 in the United States, as it is the premier“blue-chip index” out there. Another reason to pay close attention to the Dow Jones 30 is that it is made up of 30 equal weighted stocks, so gives you a little bit more of a clear picture as to what stock traders are thinking. This is in stark contrast to something like the nasdaq 100 over the S&P 500, which of course use volume-based metrics to give different weighting to each individual stock.
Friday was a good day
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The reason I say Friday was a good day isn't necessarily because it was positive, although of course it was, it has more to do with the fact that Friday was a relatively relaxed and slightly positive day. This is exactly what you want to see after that Thursday session, and it suggests that perhaps we are starting to see a little bit more liquidity jump into the market, which of course you would expect. That being said, the market is likely going to still be a little bit thin as far as liquidity is concerned until the end of next week. However, the market is likely to also react to the Non-Farm Payroll announcement on Friday. Once we get through there, then I think things start to retort the retort returned to some sense of normalcy.
If we turn around and break above the 50 Day EMA to the upside, that means we will have put in a nice basing pattern in order to continue going higher. Remember, the Dow Jones 30 fell significantly, especially in relation to its contemporaries, over the last month or so. Because of this, if the Dow Jones 30 were to take off to the upside, that would be a very good sign for US stocks in general. With this, even if you are not looking to trade this index, it is most certainly worth paying attention to.
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