Technical outlook and chart setups:
The Dow Jones spot closed at 17,830 levels yesterday,lower by almost 200 points. The index seems to have carved out a lower top at 18,000/100 levels on April 27, 2016 and is looking to print lower lows at least for short term. As it can be seen here, the trend line support extending from Feb 2016 has already been broken and the index has also tested its back side around 18,100 levels, before turning lower. The first Fibonacci support level comes in at 17,150/200 levels as depicted here. The index is expected to remain in control of bears till prices stay below 18,170 levels. It is recommended to remain short for now, with risk above 18,100 levels. Immediate resistance is at 18,100 levels, while support is at 17,500 levels.
Trading recommendations:
Remain short for now, stop is at 18,100 levels, target is 17,200.
Good luck!
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