The US Dow Jones (US30) remains one of the most interesting assets to watch after the recent correction.
After declining from the area of local highs, the index found buyers and began to recover. Now the market is in the accumulation phase, where the main issue is:
where are the zones from which the next growth impulse can begin?
Technical picture US30
On the current chart, an upward recovery is formed after a sharp decline.
Key levels of interest:
52962–52965— the first support area.
If you save the bullish scenario, this is where a new wave of purchases is possible.
52815–52820— a deeper correction zone.
The level where buyers can try to protect the recovery structure.
52668–52670— a key level of risk.
The loss of this area may open the way to a deeper correction.
US30 (Dow Jones): Key support levels to find potential entry points. The index recovers after a correction and forms areas of interest for buyers.
Macro remains supportive
Despite short-term volatility, the fundamental picture for US equities remains strong enough.
The main factor of support is corporate profits. S&P 500 earnings growth
expectations remain high thanks to investments in artificial intelligence and robust business demand.
Additional support for the market is provided by the expectation of a softer policy of the Fed.
The latest data on the economy has reduced the pressure on the idea of further rate hikes, although the market continues to closely monitor inflation and regulator signals.
Why the Dow Jones can continue to grow
Unlike the technology Nasdaq, the Dow Jones has a broader company structure.
The index includes representatives of:
industrial sector;
finances;
health care;
of the consumer segment.
This makes the US30 less dependent on a few large AI companies.
At the same time, the overall risk appetite remains supported by strong corporate results and investments in the economy.
Top Risks to the Growth Scenario
Despite the positive background, the market needs to take into account several factors:
growth in US bond yields;
uncertainty around the Fed's decisions;
possible profit taking after strong growth;
geopolitical risks.
Now investors are also closely watching the Fed's performances and key macro data, which can change expectations for rates.
Main conclusion
The US30 retains recovery potential as long as the index holds key areas of support.
Main levels of attention:
52962— the first zone of customer interest;
52815— Enhanced support
52668— critical level of protection of the growth scenario.
Fundamentally, the market is supported by a strong economy, company profits and expectations for monetary policy.
The main question now is: will the current consolidation be the basis for a new move to highs, or will the market first test deeper support levels?
