Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Dow Jones Price Forecast: Broader Uptrend Remains Intact Despite Volatility

Dow Jones Price Forecast: Broader Uptrend Remains Intact Despite Volatility

Peter Hanks, Strategist

Dow Jones Price Outlook:

Dow Jones Price Forecast: Broader Uptrend Remains Intact Despite Volatility

The Dow Jones has been an outstanding performer among the three US indices over the last few months as the ongoing reflation trade helps to bolster many of its constituents. The same forces that have helped drive the Dow higher have worked to cripple the high-flying technology stocks of the Nasdaq 100 and many leaders of the S&P 500. As a result, the Dow Jones is the only index among them that remains above its broader uptrend and it could help the index avoid deeper declines if volatility continues.

Dow Jones Price Chart: Weekly Time Frame (January 2018 – May 2021)

Dow jones stock price and chart

The trendline in question is derived from the index’s pandemic low in March 2020 and has influenced price throughout the time since. While the Nasdaq 100 and S&P 500 have since broken beneath their respective trendlines, the Dow enjoys a supplementary level of support derived from various market peaks throughout the last fifteen months. As it stands, the two trendlines converge near the 34,000 mark and will look to keep the Industrial Average afloat.

How to Short Sell a Stock When Trading Falling Markets

Wall Street (Dow Jones) Client Sentiment and Price Chart

dow jones stock price and sentiment chart .

With that in mind, client positioning data may suggest the Dow is at risk. While traders remain net-short, the number of traders net-short has decreased to its lowest levels since March 2021. Since we typically take a contrarian view to crowd sentiment, a flip to net-long may suggest the index will continue to fall.

Such a shift in client positioning might also coincide with a trendline break which would effectively open the door to deeper losses for the Industrial Average. Until such a break occurs, however, convergent support near 34,000 will remain the “line in the sand” for the index. In the meantime, follow @PeterHanksFX on Twitter for updates and analysis.

--Written by Peter Hanks, Strategist for

Contact and follow Peter on Twitter @PeterHanksFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.