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Publication date: January 23, 2025
Thursday, January 23, and the AEX is at 909 by noon. That is 6 points (0.65%) higher than last week's reading.
What happened on the AEX in the past week
After last week's strong rise in which the AEX began climbing from 879 to this week's highest level at over 920 points, the index has been correcting since Monday afternoon. The current week's low is set at 907 points for now.
What does this mean for sentiment on the AEX?
Sentiment on the AEX remains positive. The index shows enough upward momentum to reach the first price target at 930 in the short term.
Based on last week, the expectation remains that the AEX will continue to rise to the 930 level. From that level, a longer sideways correction is most likely to take place before continuing to rise to 945.
The stop loss for the pending buy position in the AEX is raised to 878 based on the closing price.
Above is the chart of the AEX over the past 2 months. You can see the running signal and the most likely short-term scenario plotted.
What happened on the Nasdaq this past week?
The Nasdaq futures are currently at 21,900 which is 400 points (1.85%) higher than last week's reading.
Over the past week, the Nasdaq futures have continued their upward trend nicely. The high of the week was at 22,093 on Wednesday afternoon. Today, the Nasdaq is correcting modestly.
What is the outlook for the Nasdaq future?
The expectation is unchanged and positive for the short term. The long position taken at 20,440 has held the important level of 20,900 on a closing price basis and has regained its way up. The short-term price target remains at 23,000. The stop loss remains at 20,900.
Below is the chart of Nasdaq futures over the past 5 months with the most likely scenario.
What happened on the Dow Jones Industrial Average (DJIA) Index this past week?
The DJIA is currently trading at 44,375 points, which is 1,000 points (2.3%) higher than last week's reading.
The DJIA Future has had a nice ride-up over the past week without any restraint. With a weekly high at 44,413, the DJIA future is trading around its highest level today. Ten days ago, the DJIA was still below 42,000 points and thus managed to gain 5.7% in a short period.
What is the expectation for the Dow Jones Industrial Average Index?
The expectation for the very short term is positive and expects the algorithmic model to start testing the previous top at 45,000 points. From that level, the most likely scenario is that the DJIA will undergo another correction to around 42,000 points. From that level, the uptrend can continue to the price target at 48,000.
Below is the chart of the DJIA futures over the past 6 months with the most likely scenario plotted.
Important items on the economic agenda for the week of Jan. 27 to Jan. 31 :
The week ahead revolves around the U.S. interest rate decision on Wednesday evening at 8 p.m. and the subsequent press conference at 8:30 p.m. On Thursday at 2:15 p.m., the ECB follows with its interest rate decision. On Friday at 2:30 p.m., we look forward to the Core PCE Price Index in the US. This is an important inflation figure for the Fed's interest rate policy.
We can therefore expect higher volatility in financial markets in the coming week.
Disclaimer: Investing involves risk. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts' own insights and experiences. They are therefore for educational purposes only.
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