Dow Jones Industrial Average Forecast October 1, 2012, Technical Analysis

The Dow Jones Industrial Average fell during the Friday session, but bounced off of the 13,400 level in order to form a hammer. This hammer suggests that the area should offer quite a bit of support, and it would jive well with the recent action. Because of this, we do think that the Dow Jones continues higher, but it will run into a bit of resistance at the 13,600 level.

Looking forward, we think that all of the quantitative easing that is out there by the various central banks will continue to drive money into riskier assets such as stock markets. Because of this, we think that a break of the 13,600 level on the daily close would be enough of a bullish scenario for us to start buying futures in the Dow Jones. As for selling, we really are interested until we close below the 13,000 level.