Venerable market analyst Larry Edelson recently reiterated his extremely bullish call on the Dow Jones Industrial Average, noting his sky-high price target for the famous index remains unchanged.
The next huge leg up won’t come until the Dow closes out a month above a certain key level first, however. Edelson writes on his website, Money and Markets:
Meanwhile, the Dow Industrials have not yet fully broken out to the upside. That requires — as I have said all along — a monthly close above 18,500.
That could come this month or next, or even later in 2017. But until that happens, my work shows the Dow Industrials and all U.S. stocks are on weak ground. So as strong as the market looks, do not jump in with both feet. Not until I give the signal, which of course would go to my members first.
But when it comes, it will be a doozy, for as I have said all along, the Dow Industrials are headed to 31,000+, no matter what the U.S. economy does.
With the Dow currently sitting around 18,884 and change, Edelson may soon get a monthly close at that key technical level.
Since the presidential election on November 8, the Dow has surged over 3% to close at a string of multiple all-time highs. Such a big move has led some analysts to wonder if the index is now overbought, but the Trump Rally of 2016 shows no signs of stopping any time soon.
The SPDR Dow Jones Industrial Average ETF (NYSE:DIA) rose $0.15 (+0.08%) to $189.13 per share in Thursday morning trading. Year-to-date, the only ETF tied to the DJIA has gained 8.71%.