Over the last few weeks, the Dow Jones rallied from about 30,000 to 33,999.
Unfortunately, it could fall apart. At least for the near-term.
For one, the Dow Jones is now technically overbought at double top resistance dating back to early May 2022. It’s also over-extended on RSI, MACD, and Williams’ %R. And it’s seeing a good deal of resistance at its 200-day moving average. Not only is the 10-year Treasury up to 2.93%, global rate-hike wagers are pushing aggressively higher, too.
Investors are also focusing on the Federal Reserve’s annual meeting at Jackson Hole, Wyoming next week, waiting for clues on policy.
With things getting chaotic again, investors may want to consider volatility-based trades, such as the ProShares Ultra VIX Short-Term Futures ETF (UVXY). The UVXY does a good job of tracking the Volatility Index (VIX), which is now back down to 19.56 — a sign of complacency, which could soon lead right back to fear.