Technical outlook:
Believe it or not, the Dow Jones Indice is preparing for a major break lower towards at least 20,000 levels from here. The indice has placed a major high in place at 26,698 levels since January 2018. The drop after that, towards 23,000 odd levels was an impulsive one and hence labelled as (1) of another impulse at a higher degree or A as the first leg of the corrective structure A-B-C. Please note that a 5 wave impulse lower seems to be very high probability since 26,698 high was the termination point of a larger degree. Since the 23,000 lows made in February 2018, the Dow Jones has remained flat producing an a-b-c flat corrective structure as labelled here as wave (2). If this structure of wave counts hold to be true, the next leg wave (3) should be on any moment from here and could travel all the way towards 20,800 levels at least.
Trading plan:
Remain short for now around 24,800/25,000, stop above 25,500, target is open. This is a positional trade.
Fundamental outlook:
There are no major events lined up for the day.
Good luck!
