By looking at the Dow Jones charts I am getting increasingly bearish. The top in June is standing out more and more as a significant top.This week the market has broken through yet another support level and is now forming a “head and shoulder” pattern. Looking at the swing charts the trend is clearly down – lower swing tops and bottoms.
Through May and the last part of June the Dow was trading within a price range, but over the last couple of days it broke through the support and is heading down to the price range that it was trading in during April.
I’ll be looking for a Short opportunity!
The chart below shows the Mini Dow futures contract.
Dow Jones down trend