Dow Jones Industrial Index
My preferred count is still that we have seen a important top at 16,588.25 and that we have seen an impulsive decline from 16,588.25 to 15,340.69 followed by a double zig-zag correction, which took back most of wave 1. However only a break above 16,588.25 will invalidate my immediately bearish count. Even if the former top at 16,588.25 is broken the potential upside should be very limited.
Short term I will be looking for a break below minor support at 16,126.29 and more importantly a break below the possible S/H/S neckline at 16,046.99 confirming renewed downside pressure in wave 3.
Longer term I'm looking for wave E of a major expanding triangle I have been looking for since late March 2012 (please see my post from March 26 - 2012 here)
