The indices have been retracing during the first part of the week but will it continue? The daily charts below show the critical levels where price could turn. The red dotted lines represent both the support (below price) and resistance (above price).
Nasdaq 100 E-mini
The daily chart for the Nasdaq 100 E-mini shows that price has retraced upward to the ATR (red plus sign) and the Stochastics is indicating a potential overbought area has been reached. Additionally, there is a resistance area immediately above the ATR (red dotted line above plus sign). Since price is making lower lows and lower highs, trend traders would likely wait for a reversal bar to form at one of the resistance areas for a potential entry into the downtrend.
Mini Dow Jones
The mini Dow Jones daily chart shows that price has formed a double bottom and is retracing up to the ATR (red plus sign). There are three potential areas of resistance above the ATR. The Stochastis is approaching potential overbought areas but price may continue up today since the Stochastics is still climbing. The key will be if a candlestick reversal pattern forms at or near either the ATR or one of the resistance areas.
S&P 500 E-mini
The daily S&P 500 E-mini chart indicates lower highs and lower lows, as well as a double bottom. The double bottom formation indicates that price will likely move upwards to find an area of potential resistance. The first area of resistance is at the ATR followed by two resistance areas, with a double top formation at the upper most resistance area. Additionally, the Stochastics is approaching the area of potentially being overbought. The key will be if a candlestick reversal pattern forms at either of the resistance areas, which would indicate a potential resumption of a downward move.