Dow Jones Technical Analysis
The Dow Jones 30 initially fell during the week, but has turned around to show signs of life, as on Friday now, it looks like we’re threatening some type of breakout. If we get that breakout, then it certainly could bring in more FOMO trading. After all, traders are awfully excited about the idea of Federal Reserve interest rate cuts. And therefore, I think we’ve got a situation where it’s going to be all about the Federal Reserve and nothing about anything else.
Certainly, earnings season won’t matter when it comes, nor will other things along those lines. It’s all about liquidity. If you flood the market with liquidity, it will find places to go, and stocks generally will be the first place. Short-term pullbacks should continue to attract a certain amount of attention, especially near the $41,600 level. And then after that, we could be looking all the way down to the $40,000 level, which is an area that obviously has a certain amount of psychology attached to it.