E-mini Dow Jones Industrial Average (YM) Futures Analysis – Potentially Bearish Closing Price Reversal Top

March E-mini Dow Jones Industrial Average futures posted a potentially bearish closing price reversal top on Monday. The move doesn’t mean the trend is getting ready to turn down, but it could be an indication that the selling is greater than the buying at current price levels.

Often this chart pattern forms because of technically overbought conditions because it tends to alleviate some of the upside pressure. Additionally, it often leads to the start of a 2 to 3 day correction.

Daily Swing Chart Analysis

The main trend is up according to the daily swing chart. However, the closing price reversal top may be a sign that momentum is getting ready to shift to the downside. A trade through 25210 will confirm the chart pattern and signal the change in momentum.

A trade through 25359 will negate the chart pattern and signal a resumption of the uptrend.

The main range is 24086 to 25359. If the confirmation of the reversal top leads to increased selling pressure, we could see a possible 2 to 3 day correction into its retracement zone at 24723 to 24572.

The chart pattern is potentially bearish, but it needs help. There needs to be a confirmation. We also need to see increasing selling pressure. A combination of profit-taking and aggressive counter-trend shorting could trigger an acceleration to the downside.

Investors have been too calm lately. Time for volatility to return.