The Daily chart view is again presented here, further our yesterdays’ discussions. The Dow has managed to rally further and hit the fibonacci 0.786 resistance (of the drop from 17,900 through 17,050 levels), at 17,720/30 for now. Please note that the wave count discussed yesterday doesn’t change, till prices remain below 17,905 levels. Bears are expected to take control back from current levels and extend drop towards 16,300 levels at least. Immediate interim resistance is seen through 17,900/10 levels, followed by 18100/200 and higher while support is seen through 17,400 levels, followed by 17,000 and lower respectively. Till the above wave count holds, selling through intraday rallies should be preferred. The RSI is also seen to turning lower from 70 levels now, which supports a bearish outlook. Believe it or not, the indice is preparing for another heavy drop soon.
Remain short, look to sell further on rallies, stop at 18100, target 16,300.