Dow carves a lower high at 25450 levels? Looking lower now

The rally looked stretched already but a lower high seems to be carved by the Dow Jones at 25450 levels. The wave structure still remains intact with an impulse Wave (1), followed by a flat corrective Wave (2) that terminated at 26000 levels and Wave (3) underway with lower degree waves i and ii at place around 21800 and 25450 levels respectively. If the above structure holds well, we could see a wave iii of (3) lower very soon, that could push prices below the 21800 levels going forward. We maintain our bearish view for now, until prices remain below 26000 levels with downside potential targets towards 21800 and lower respectively. Also note that prices have reversed lower very close to the down trend line passing through 26950 and 26000 levels respectively.


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