Technical outlook:
Dow Jones is holding below the critical resistance at 29,600 as discussed earlier, keeping bearish structure intact. The index had earlier dropped between 29,600 and 18,200 carving a meaningful bearish boundary. Since then, the counter trend rally had reached up to 28,400 levels. Also note that it has managed to hit above the Fibonacci 0.88 retracement level of the above drop. A bearish reversal is expected from current levels and the index should be heading lower towards 27,000, 25,000 and further in the next few weeks time. Immediate resistance is seen towards 29,600, while support is around 27,500. A drop below 27,500 would confirm that bears are back in control and the proposed drop should accelerate.
Trading plan:
Remain short, stop above 29,600, target is open.
Good luck!
