Connect with us

Hi, what are you looking for?


Dow Jones price forecast for the rest of 2022

The US stock market rallied since the last inflation report showed inflation might have cooled. In October, the prices of goods and services in the United States rose less than feared, triggering a rally in the stock market and a decline in the US dollar.

But given everything that happened in 2022 (i.e., Fed’s tightening cycle, Russia invading Ukraine, and supply chain bottlenecks), the question is if this recent bounce is false. Or do we have a bottom in place for the year?

US Treasury yield curve warns of an upcoming recession

One of the most reliable leading indicators is the Treasury yield curve inversion. It compares long-term interest rates to short-term interest rates, and it is a leading recession indicator when short-term rates exceed long-term ones.

In October 2022, the Treasury yield curve inverted to its lowest point in two decades. If a US recession is just around the corner, as indicated by the inverted yield curve, companies will have difficulty performing. Hence, earnings will be negatively affected; thus, the stock market will not be attractive to investors.

Dow Jones price forecast from a technical perspective

The fundamental perspective may not be the brightest for Dow Jones, but the technical one leads to a bullish price forecast. A falling wedge pattern just broke higher after the October inflation report, offering a tempting trade from a risk-reward perspective.

Dow Jones chart by TradingView

The market typically retraces the entire falling wedge pattern without making a new lower low. Therefore, providing the Dow Jones does not drop below 10,500 points, the current rally may have more legs and target 14,000 points.

The Fed’s message is key here. But until the next meeting, scheduled on December 13-14, there is more than a month left.

Historically, November is not a reversal month, especially if stocks rally. As such, expect the price action surrounding Thanksgiving to remain bullish, with the 10,500 area acting like an invalidation one.

The post Dow Jones price forecast for the rest of 2022 appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like


    Inflation appears to be on the decline. The Personal Consumption Expenditures Price Index (PCEPI), which is the Federal Reserve’s preferred measure of inflation, grew...


    Solana (SOL/USD) is enormously underrated as a cryptocurrency project, even with its hiccups – including the latest exploit on one of the ecosystem apps....

    Editor's Pick

    The new eSIM infrastructure will help modernise the IoT connectivity market with fast, secure connections and reduced vendor lock-in. 1oT, a tech startup from...


    The latest Job Openings and Labor Turnover Survey from the Bureau of Labor Statistics shows the total number of job openings in the economy...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2023