Elliott wave analysis of DJI - Short term count

Dow Jones Industrial Index

The decline from 16,631.63 does have impulsive characters, but to confirm that an important long term top is in place, then resistance at 16,456.12 can't be broken. Any break above 16.456.12 will confirm that the decline from 16,631.63 is corrective and a new rally to and likely above 16,631.63 should be seen.
If however, resistance at 16,456.12 does protect the upside for a break below 16,227.31 and more importantly below support at 16,063.20 the impulsive structure will be confirmed and a powerful decline in wave iii lower should be expected.

Elliott wave analysis of DJI - Short term count

Dow Jones Industrial Index

My preferred count shows that we should see downside pressure very soon. As long as resistance at 16,505.70 and more importantly resistance at 16,588.25 protects the upside I will be looking for a break below support at 16,126 and more importantly below 16.046 for downside acceleration towards at least 15,525 and possibly much lower.

However, a break above resistance at 16,588.25 will invalidate my bearish count and delay the expected downside pressure for a possible move higher towards the 18,500 - 18,600 area.