Dow Jones 30 Forecast October 13, 2014, Technical Analysis

The Dow Jones 30 fell hard during the course of the week, breaking the back of the massive hammer from the previous week. Because of this, it looks as if the market is ready to continue breaking down a bit, and we do believe that a move below the 16,300 level would confirm the bearish pressure, which should send this market much lower. That being the case, if we get some type of supportive candle in between here and there, we would be buyers. We have no interest in buying this market until we see that though, and as a result we are on the sidelines but have a bearish outlook now it does weekly candle has been so strong.

The marketplace closing at the very bottom of the range certainly doesn’t do a lot for confidence either, and we are starting to see that the Federal Reserve is concerned about global growth in general. If that is the case, it’s very likely that the Dow Jones will continue to suffer. After all, it is an index that features a lot of global companies it will do a lot of work in places like Europe, the exact markets that the Federal Reserve are concerned about. With that being the case, you have to imagine that the earnings potential of these companies certainly seems to be taking a hit at the moment, and that should continue to work against stock valuations.

At this point in time, it is very difficult to imagine going long of this market without at least a weekly supportive candle, and we would not be surprise at all to see this market break down to the 16,000 level first, and then possibly as low as 15,300. With that, we are very bearish and really have a hard time imagining that the buyers will be confident and start picking up the market at this point in time. It appears that we could have serious downward pressure in some of the other markets as well, and that should continue to drop the value of the Dow Jones Industrial Average over the longer term.