Fundamental Outlook

Investors continue to monitor the ongoing US earnings season, which remains the primary driver of the Dow Jones at the current stage. Strong corporate earnings could support the index's upward momentum, while weaker-than-expected results may increase selling pressure.

At the same time, markets remain focused on key US economic data, particularly inflation and labor market figures, as they play a crucial role in shaping expectations for the Federal Reserve's monetary policy. Meanwhile, developments surrounding tariffs and geopolitical tensions continue to influence overall market sentiment.

Technical Analysis 

Figure: US30, H4, TradingView Figure: US30, H4, TradingView

From a technical perspective, the Dow Jones continues to trade within a bearish market structure on the 4-hour chart, forming a sequence of lower highs and lower lows.

The recent rebound remains part of this broader bearish structure and is currently viewed as a corrective move that could precede another leg lower. However, if the index manages to break above 52,505.45, which represents the latest lower high within the current trend, it would be considered a bullish signal that could indicate a shift in trend from bearish to bullish.

Meanwhile, the blue highlighted zone between 52,297.88 and 52,389.05 represents a potential supply area, where the index could face renewed selling pressure and resume its broader downtrend. The first downside target is located at 51,764.39, as per analyst analysis.