Dow Jones remains unchanged. Sell on rallies through 25600

The story for Dow Jones remains unchanged for now with bears in control and printing yet another low around 24800 levels yesterday before pulling back. Looking at the wave structure, a potential wave (3) seems to be unfolding since 26300 levels last week. Within the larger wave (3), a lower degree wave 1 could have been complete at 24800 levels and a 3 wave counter trend rally might be unfolding as wave 2 (not labelled here). If the above wave structure holds true, wave 2 potential termination could be through 25600 levels going forward. Bottom line, any intraday rallies should remain well capped below 26300 levels if the above wave counts should remain valid. We maintain our medium term bearish outlook in Dow Jones against 26300 levels with potential targets below 23000.


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