Dow Jones bearish reaction expected around 25500/850

6 lis 2018

We had discussed early last week (Oct 29), that Dow Jones is close to completing its 5 wave decline from 26950 levels and a short term corrective rally could be underway any moment. Looking into the price action so far, it seems that the indice has already completed its first wave of the proposed corrective rally at 25600 levels. If the correction is unfolding as a zigzag , we could see another high possibly towards 25870 levels, which is also fibonacci 0.618 resistance as shown here. Please also note that the previous termination of wave 4 was seen around 25800 levels, making it a strong convergence for a bearish reaction. As discussed earlier, Dow Jones could be preparing for a much deeper correction, going forward. We are changing our stance to bearish again from 25500/800 levels.


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