The Dow Jones has reached all-time highs surpassing 38,000 in Mondays trade session.

The Dow Jones (DJIA) peaked in Monday's trading session at 38,109. The market has since retraced back below 38,000 Tuesday morning. It looks as if the index is pricing in lower inflation and rate cuts. Looking at the constituents within the Dow Jones it does look like a lot of the stocks are near or reaching all-time highs, however, some stocks are still 5%+ from thier all-time highs. Such as United Health around 9% from its highs, Goldman Sachs around 11% from its highs & Home Depot 13% from its highs. Microsoft & Amgen helped push the index higher towards 38,000 as both these stocks reached all-time highs.

Taking the above into consideration, there could be some value in certain components of the index, as mentioned above along with Mcdonalds, Coca-Cola & Disney. From a technical outlook, it does look as though the index could find it hard to continue pushing higher, the RSI does read 71 suggesting overbought conditions, and previous such conditions have been met with little gains to the upside, followed by a downside move of more than 5% at some point in the near future, but these dips were bought into.

Towards the downside, a move towards 37,000 would be good as then the index would reach its 2022 peak and could act as a level of support. MACD is trending higher right now therefore taking shorts would be risky, buying on the dip would likely provide a better risk-to-reward opportunity. with 37,000 being a good potential level to get in.