Charts Predict: Dow Fading, 7,500 Likely
The recent rally in the Dow Jones Industrial Average is in its "final stages," Roelof van den Akker, technical analyst at ING Wholesale, said Tuesday.
The dollar is likely to strengthen in the coming weeks, while the Dow will correct, van den Akker told CNBC.
As the dollar strengthens, the Dow will end its rally, topping around 9,000 and then correcting to 7,500, and "the development of a higher low should be expected between here and the end of July," he said.
"A weak US dollar is resulting in higher commodity prices, higher equity prices and lower bond prices," van den Akker said.
The euro-dollar cross has developed a wide trading range, with a lower end of $1.245 and an upper end of $1.45, he noted.
"We could see a top around $1.45, followed by the next correction and I would say a decline towards $1.34 in the coming weeks," van den Akker said.