Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the woocommerce-shipping-stamps domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /var/www/wp-includes/functions.php on line 6114
The Dow Index is Destined to Rocket Past 2700 Soon - Here's Why. - True Edge Trading

The Dow Index is Destined to Rocket Past 2700 Soon – Here’s Why.

All of the major indexes posted decent gains today, with the Dow Jones Industrial Average leading the way with a gain of over 1%. Yet the Dow sits at an interesting level. There are various factors that could impede its progress. But here’s why it should reach 2700 in the coming days.

The Dow Index is testing potential resistance.

The Dow Index is currently testing previous support, which could act as resistance. It also has the 200 Period Moving Average looming just above that level. This means we should see selling coming into the market soon, right?

Let’s not get bearish too fast here. Just a glance at the other major indexes and we can see the market us far from bearish.

The NASDAQ blew through its 200 Period Moving Average.

This chart of the NASDAQ 100 shows that it barely blinked as it powered through its 200 Period Moving Average. In fact, it is about to test all time highs! Now, the NASDAQ represents a majority of tech stocks. These tend to lead the way for the other broad market indexes. Let’s take a look at another broad market index, the S&P 500.

The S&P 500 has cleared its 200 Period Moving Average AND Resistance.

The S&P 500 chart looks similar to the Dow chart. But it has already passed its 200 Period Moving Average AND potential resistance just above 3000.

So with the other indexes looking like they are incredibly bullish, we expect to see the Dow Index clear its hurdles and move at least to the resistance that could come into play just above the 2700 level.

Jeff Drake
True Edge Trading