Dow Jones Index - Will the double top come over the summer?

Seasonality

The Dow Jones Index is made up of the 30 largest companies in the USA. It is surprising what we could possibly expect from it. A significant correction could therefore be on the horizon. Above all, the weak seasonality is likely to increasingly come into focus for market participants.

It is clear that we are facing a severe seasonal correction, starting in the second half of June.

Medium-term chart outlook

Meanwhile, the charts are already looking very shaky. After the recent record high of 40,000 points, a potential double top is now emerging. It is important for a double top that the second rise was higher than the original high. This was the case with the Dow Jones. Accordingly, the neckline is classified at just under 37,735 points. If this important mark falls, trouble looms. Over the next few weeks and months until autumn, a score of 35,700 points in the Dow Jones could become realistic.

Short-term chart outlook

In the short term, however, I expect prices to recover. The current weakness could be corrected first. The points of 38,500 and 39,300 points are suitable for recovery targets. I will look for short opportunities here. If the procyclical sell signal comes through immediately, I also plan to position myself accordingly.

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