The Dow Jones futures are forming the final leg of a major TR (Trend Reversal) pattern. The long-term upward trend ended with a high close of 11397 on the November 4th reversal date. After testing the downward sloping reaction line during the November 5th session, Dow Jones turned lower and closed lower each of the following eight days. The market dropped below the prior consolidation pattern before staging a four-day rebound that failed inside the 60% sell window on the fifth day. Monday’s outside day is a bearish price action and signals the end of the corrective rally, followed by a continuation of the newly emerged downward trend. The market is poised to trade lower into the December 2nd minor reversal date, followed by a major reversal date due on December 13.
