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Is the Dow Jones now headed to 40k?

On Friday the Dow Jones reached a new all time record high at 38,215. It did not hold all of that gain into the close, but still ended the week with an all time record daily and weekly close, at 38,109. The rebound from the mid January relapse has now taken the index into uncharted territory once again. Looking closely at the long term chart of the index, it does not seem like there is much in the way of stopping from reaching 40,000 at some point in the near future. That is not to say it will do that and of course the Fed policy decision due on Wednesday could throw an immediate spanner in the works, as could the US monthly jobs report on Friday. Leaving those to one side, the chart dynamic is certainly quite impulsive and right now the markets seem to be gunning for the Fed to take their foot off the brakes, but we shall have to see if that happens, or not. The Dow Jones futures are a little lower this morning, as a degree of risk aversion seems to kick in. That said, it has been a mostly positive session for the Asian stock markets and the slight downside in the Dow Jones futures right now is very shallow. The index is currently priced to reopen later today at around 38,080
 

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