Dow Jones Price Predictions: Will the Earnings Season Push the Index to New Highs? Even after the reflation trade was put on hold due to falling Treasury yields, the Dow Jones has been creeping closer to new highs. The move demonstrates the index’s remarkable resiliency, which is promising considering the current trading environment. With the Dow Jones approaching new highs despite a slowdown in market action, the focus will likely shift to earnings season as the month develops. 4 Hour Time Frame Dow Jones Price Chart (May 2021 – July 2021) Fortunately for bulls, earnings season got off to a terrific start Tuesday morning, with JP Morgan (JPM) and Goldman Sachs (GS) blowing past analyst projections. The official start of earnings season, which will go until around mid-August, will be marked by earnings from the country’s top banks. The vast majority of S&amp While results provide an opportunity to check in on macroeconomic issues affecting individual firms, the season also allows for higher volatility in specific stocks, which can often overflow into the broader averages. The forthcoming earnings season presents an intriguing prospect for traders looking for volatility, with volume and volatility heading downward over the summer doldrums. If quarterly results come in much higher or lower than Wall Street expectations, the price action that follows could help resurrect volatility more broadly. A spate of solid quarterly results, on the other hand, might help boost the Dow Jones to new highs over the 35,092 level, which is just above the present trading price. Traders and investors should keep a watch on impending earnings releases in any case since they have the ability to affect equities market price action. Given the reduced baseline of implied volatility across the market, implied volatility crush, or IV crush, following impending corporate reports may be particularly painful for option traders. Meanwhile, for updates and commentary, follow @PeterHanksFX on Twitter. — DailyFX.com Strategist Peter Hanks wrote this article. Peter can be reached via Twitter at @PeterHanksFX./n
Read More
