Next Stop 55,000?

June 4, 2026

Tech has been the belle of the ball, but the Dow really showed up to the party this week. Financials and healthcare led the way, pushing the index up more than 2% over the last five trading days as of this writing. To me, that’s a healthy sign. When more sectors start participating in the rally, it says that investors are becoming more confident in the overall economy rather than relying on the same handful of stocks to carry the market higher. Don’t get me wrong—I still think technology and AI remain the most important stories in the market. But it’s nice to be able to talk about something different for a change. The Dow is now comfortably above 50,000 and at an all-time high, Could 55,000 Be Next? As always, we use fundamentals and technicals together… The technicals tell us when to buy, and it signals how things can play out.   Right now, the Dow is showing a pattern we’ve seen play out many times before. When the Dow breaks out of a large consolidation range, the next move can often be similar in size to the range itself. This is giving us a potential measured move in the Dow Jones of 5000 points higher.

Technical analysis tells an important story.  It’s what the buyers and sellers are actually doing. Of course, patterns can fail. Markets don’t move in straight lines and nothing is guaranteed. This is not a prediction- it’s just me relaying what the market is currently telling me. And with everything we’ve been writing about over the last few weeks that support higher prices for stocks when we see bigger patterns like this show up it’s worth taking note of. Have a great weekend!