The price of Dow Jones at the beginning of 2023 was $34,000. Similarly to the S&P 500, the Dow enjoyed a post-lockdown rally. Despite the lockdown low of $18,335, the rally pushed price to an all-time high of $37,000 in January 2022. The Dow Jones is one of the oldest and most commonly followed equity indexes. The $DJI includes only 30 large companies. As of May 31, 2023, the market cap of the Dow Jones was $10.9trillion.
Last year was not a good year for the Dow Jones as gains from 2021 were lost up until October 2022 when the bulls were able to regain hold and push price up. In October 2022 alone, $DJI rallied with 4000 points. This rally has continued and 2023 has seen price rally to the year high at $35,660 in July. The rally was counteracted by a bearish turn almost immediately on the monthly chart.
RSI on the monthly chart shows price has been overbought. At the beginning of this week, the bears pushed the price of Dow Jones below $34,000. This price drop made price reach $33,315, the lowest price so far in the second half of 2023. In the coming weeks, we might see the price of $DJI rally to a psychological level of $35,000.
Some of these ideas are in our clients’ portfolios. To understand if this one can work for you or for help to invest your own wealth, talk to our advisors at FM Capital Group. Would you like more information on how to get stock index in your portfolio? Schedule a meeting with us here.