Dow Jones long term out is bearish against 29600

Dow Jones remains bearish against 29600 over the long term. But don't e surprised to see a sharp rally towards 26800/27000 levels from here, before the indice finally reverses. The rally is not mandatory but possibility remains and it could surprise many traders who remain aggressively short. Please avoid getting into a bull trap since Dow Jones remains a classic sell on rallies case study. The early drop between 29600 and 18200 was an impulse, Wave (1) on the chart. Subsequent counter trend rally was corrective and stalled around 27600/700, which is fibonacci 0.786 retracement of Wave (1). If the above wave counts are correct, Dow Jones should be heading lower towards 18200 levels as long as price remains below 29600.

Strategy:

Short against 29600, targeting 18200 and lower.

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