The Dow Jones is approaching tough downtrend resistance dating back to January this year.

Technicals

From a technical aspect, the Dow Jones looks very strong and a 'buy on the dips' scenario could possibly work out well. Below is plenty of support, initially at the cluster resistance of 32,900. A break here could see the index test lower levels at 32,500 followed by 32,000. A few postive things are happening on the chart right now. Firstly the moving averages are turning higher, MACD is very positive, but RSI does read 72.9, Suggesting overbought conditions on the daily timeframe. This should be taken into consideration and a technical pullback or at least consolidation would be needed before a breakout. The last time we saw oversold conditions in this timeframe was 8th November 2021...and we saw a decline from here.