Dow Jones January 2012 Technical Analysis – DJIA Tries To Close In On July 2011 Highs:
Can the Dow top 12,750 soon?
U.S. major stock market averages are looking to close at the highest levels in 6 months. The Dow Jones broke through a significant technical level of 12,511 today as investors gobbled up stocks in anticipation that 2012 might be a better year than 2011. The 12,500 level is an important resistance level that U.S. stocks have not been able to penetrate and it’s a positive sign that equities are following the underlying-improving economics fundamentals trends.
The rise in U.S. equities is getting more attention via news headlines which may bring in more reluctant and hesitant buyers. If the Dow can close within its current 2-3 day range, it’s possible that it could rise above the highs set in July 2011 if market participants view the medium term outlook as positive. Data from the U.S. economy continues to show some signs of accelerated growth compared to recent quarters and more good news could be another reason for institutional buyers to step in. We are watching broad economic data carefully and short term price movements to see if the 12,700 level can be breached – our analysis could easily change but we doubt headlines from Europe will be the cause as Europe stress syndrome has been less prevalent in its impact on market activity lately.
