Dow Jones Forecast Today 22/01:Dow Jones 30 Recovers (Chart)

(MENAFN- Daily Forex)

• During my daily analysis of the major indices, the Dow Jones industrial average has captured my attention, as it initially pulled back during the trading session but has since rallied rather significantly. Because of this, the market is likely to continue to see a lot of buyers on dips, as that seems to be the overall attitude of the market in general.
• I do like the idea of owning the Dow Jones 30 now that we have a pro-business administration in the United States because that will obviously benefit the biggest companies.

Technical Set up

The technical setup for this pair is rather strong, and after consolidating in a 1500-point range, it now looks like we are poised to break out to the upside. Interestingly enough, the so-called“measured move” of this breakout is for a move to the 45,000 level, which of course is a 1500 point gain from the breakout point. This is also the recent all-time high, so it all ties together quite nicely. I think if you are a bit patient at this point, you could perhaps take advantage of what is obviously a very bullish market, and one that Trump pays quite a bit of attention to.

For those of you who didn't trade during the first Trump administration, he would come out and do whatever he could to juice the market higher. He considers the Dow Jones 30 as one of the major benchmarks of whether or not he's doing well, and therefore it's a pet project of his to goose this market higher. Furthermore, we also have seen just a little US dollar weakness during the session, so that suggests that perhaps the market has further to go, if for no other reason than we have a little bit of help from the currency side.

If we do break down below the 50 Day EMA, I suspect that the 42,000 level will be like a hard floor in the market, especially now that the 200 Day EMA is racing toward that area. I have no interest in shorting this market, but if we did break down through that area I have to start at least thinking about that possibility.

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