eMini Dow Jones Potential Fall Early in the Week?

The emini Dow Jones may have a potential fall early in the week. Here’s the recap of the pattern.

eMini Dow Jones Potential Double Top Formation - potential downward turn prior to FOMC releases
eMini Dow Jones Potential Double Top Formation

The weekly chart shows that the emini Dow Jones has retraced back to the ATR after the magenta dot plots on the ADX.

The daily chart stochastics is indicating that the market is overextended to the upside. Plus, price has returned to the area that resisted price from increasing. This is also known as a double top formation.

Then the 360-minute chart (6-hour chart) shows that price is testing the prior high and formed a bearish intent bar – indicating a potential move to the downside. Instead of making new highs in the stochastics (with price), a lower high was made. A lower high was also formed on the ADX and a magenta dot plotted to indicate that price should seek a support area (typically the ATR area).

The combination of these three charts indicates a move down is likely at the beginning of the week. Going down in time to the lower time frames, a trader could confirm a downward move and then enter using either the futures contracts or the Nadex Touch Brackets. Gail does a video review of other markets, including the emini S&P 500, emini Russell 2000, EURUSD, USDCHF and the USDJPY in the recent blog posts.

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