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Dow Jones 30 Price Forecast – Dow Jones 30 Continues to See Buyers

By:
Christopher Lewis
Published: Sep 17, 2024, 13:31 GMT+00:00

The Dow Jones 30 continues to see a lot of upward pressure overall, as traders are likely to see a lot of buying pressure ahead of the FOMC meeting and interest rate decision. The press conference of course will be the biggest movers of the market going first.

In this article:

Dow Jones Technical Analysis

The Dow Jones 30 has rallied a bit during the early hours on Tuesday as we are going to continue to see a lot of noisy behavior in general. All things being equal, this is a market that is probably being run up into the FOMC meeting. And that, of course, is something that happens quite often. They try to get ahead of the Jerome Powell statement, and then we get volatility during the statement, and then we continue the uptrend.

That looks like what we’re trying to do here. Regardless, this is a market that you cannot short. It’s just far too strong. And that’s probably true with any risk asset, because it’s obvious that the markets are choosing to look at the economy slowing down as a good thing. That is the game that we’ve been playing for about 16 years. Now I know that you are taught that.

It’s all about earnings and the economy and everything else. But the worse the economy does, the better the stock market does. It’s just an undeniable fact now. Because the idea is that the Federal Reserve is going to come in and bail everybody out with plenty of liquidity. And as long as that continues to be the case, and passive investing is the norm, this is exactly what you’ll see.

So, if the economy slows down, the stock market will move up. There does come a point where the economy becomes a little too soft for the stock market to hang on to the gains, but when that happens, you really don’t know. All you can do is pay attention to the overall momentum and the trend and follow it right along. Dips at this point in time should continue to be buying opportunities.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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