Forecasts for Wall Street on April Fool's Day 2020

London tends to follow the Dow Jones index, so our chartist analyses recent moves stateside. This is no joke.

Wall Street, the DOW (DOWi:DJI) 

Traditionally, we would consider producing some sort of absurd analysis for 1 April in homage to April Fools Day.

However, about the best we hope for is a grinning Prime Minister saying "gotcha" on the pavement outside Downing Street. 

Somehow, this appears as unlikely as our immediate positive outlook against the Dow Jones.

Following a truly confused day, the index managed to close at 21,927 points.

It "only" needs above 22,480 to be viewed as entering a cycle to an initial 23,126 points with secondary, if exceeded, calculating up at 24,725 points.

These numbers are supposed to be "big picture" scenario but, thanks to the width of many recent daily movements, it would not take much for a day to go utterly crazy.

However, we have some doubts. As the chart inset highlights, the US market opted to pay homage to the blue downtrend, ensuring the index failed to break upward.

This being the case, it appears some reversal shall be on the cards.

Weakness now below 21,850 computes with an initial drop target at 21,606 points.

If broken, secondary is at 21,406 points but importantly, the index shall find itself in a zone where sharp reversal to 20,640 becomes painfully possible.

Always remember we are looking at The Dow only and not after-hours futures.

Finally, a lot has been said about Virus Tourists, these folk turning up at remote locations with Mobile Homes and Caravans, or in the case of Prince Charles, by private jet.

Here in Argyll, Scotland, a new type of tourist has appeared. A few reasonably sized boats have dropped anchor in the bay, presumably fully stocked with toilet roll and booze as the occupants have not ventured ashore.

To be fair, envy is the only emotion and hopefully the weather remains calm for the occupiers.

Source: Trends and Targets      Past performance is not a guide to future performance

Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang, or interactive investor will be responsible for any losses that may be incurred as a result of following a trading idea.