Dow Retreats to Low 19,900 Region After Scraping 20,000 Mark

Dow Retreats to Low 19,900 Region After Scraping 20,000 Mark

The Dow Jones Industrial Average was holding at 19903.60 at 14:15 EST after a day of decline in the first trading session subsequent to the index scraping the coveted 20,000 mark by less than a decimal point in Friday’s trading session.

After weeks of sporadic increase the prospect of ‘Dow 20k’ entered the minds of many analysts in early November, as the index progressed through the 18000 region, prior to breaking through the 19000 boundary on November 22.

From its initial break though the index continued its rise, with a significant jump apparent on December 7, prior to a more gradual ascent and the eventual assumption of a plateau upon which the Dow had rested since mid-December 2016.

After sessions of only moderate fluctuation around the 19800 to high 19900 region, the Dow fell back to the 19700 territory in the concluding trading sessions of 2016, as many cashed in their gains from the trading year. However, the early sessions of 2017 have been wrought with optimism. With the index reaching within a decimal point of the 20,000 mark on January 6, prior to once more falling, closing the trading session at 19991.80.

However, despite an optimistic notion adopted by many analysts – predicting a continuation of gains, finally surpassing the barrier in the first trading session of the second week of 2017, the index has fallen back to the low 19900 region.

With the prospect of an increase above 20,000 ebbing from today’s trading session as each hour passes, many still remain optimistic of a breakthrough the mark within this trading week – however scepticism is high – with many recalling similar predictions made throughout the significant increase experienced in November and December of last year.

 

Chart from: https://www.ig.com

Showing daily fluctuations in the value of the Dow Jones Industrial Average during its march to within a decimal point of the 20,000 mark on January 6.

 

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