Should be a bounce in the DJIA near the 12700 level

Assuming the DJIA can get down to the 12,700 level in the days ahead, there should be a sizable upside bounce from this level (or within 10 to 20 points above or below this level) which may serve as a possible entry point for a new short position.

At this juncture it looks quite probable that the Dow Jones Industrial Average will get to the 12700 level, and if it does or within a few points of it, I would be very surprised NOT to see a bounce and upward reaction from that level.  Sometimes a target level is achieved with an opening gap down as an exhaustion and then price rallies right from the get go onwards.

Despite the intermediate term growing bearishness of this market, the fact is that right now the DJIA is sill constrained within a trading range between 13,276 and 12,700.  There is always an outside change that a support level will immediately be taken out and ignored but I usually rate such a chance as pretty low probability.

The equivalent level on the sp500 comes in near the 1340 to 1343 range.  So there should be an upward bounce from that level as well.

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