The Dow Jones Industrial Average hasn’t done too bad lately, with the index about flat over the past month.
Year-to-date, it’s done about as well as the other major indices, up roughly 13% just like the Russell 2000 and the Nasdaq. The S&P 500 hasoutperformed all of them,up 16.5% in 2021.
When I look at the technicals though, there are clear issues standing out on the Dow Jones Industrial Average.
As we enter mid-October, it’s clear that we may be in a make-or-break situation for the index.
JPMorgan (JPM) will kick off earnings in a few days. Goldman Sachs (GS) will follow shortly after on Oct. 15. The banks make up the No. 15 and No. 2 weightings in the Dow, respectively.
For what it’s worth, Microsoft (MSFT) sits up at No. 4, while Apple (AAPL) is the 20th largest weighting in the 30-stock index.
Can earnings from these handful of stocks save the Dow or is more selling pressure underway?