The rebound this week appears somewhat lacklustre for the Dow Jones Industrial Average (DJIA). So if momentum struggles to pick up, we’re watching a potential bearish reversal to materialise on the daily chart.
Currently -2.6% lower, ‘sell in May’ appears to be playing out. Admittedly its seasonal tendency this month of the year is not too convincing, but we can see that average positive returns diminish noticeable following a peak in April. Furthermore, June tends to be a weak month for DJI according to the 30, 15 and 10-year averages, which could leave time for the index to carve out another lower high.
