Dow Jones potential bearish reversal from 24800/25100 levels!

The Dow Jones wave structure and price action remains unchanged for now. The spot rate is seen at 24500/600 levels at this point and there may be one more push higher into fibonacci 0.786 resistance at 25100 levels before the indice turns bearish again. Please also note that the resistance trend line since 26950 levels is also passing through very close to 25000, and hence a bearish reversal could be expected at the confluence. Looking at the larger wave structure, the Dow Jones had dropped 5 waves from 26950 to 24100 levels earlier labelled as Wave (1) here. What followed can be constructed as a flat that terminated at 26000 levels, labelled as Wave (2). The drop from 26000 to 21800 levels is being seen as Wave i of (3) for now and the subsequent rally from 21800 to 24860 levels could be Wave ii of (3). If this count holds, prices should remain below 26000 levels and a 3rd of 3rd wave should be underway. Ideally this wave should be the most powerful bearish leg.


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