Dow near crucial level 2

Dow reaches its upper trend line at the level 16700. Last couple of times we mentioned that the level near 16700 is the very crucial level for Dow. Yesterday Dow hits intra high at the level of 16562 and closed at 16444 indicating triple digit loss. In the daily charts, oscillators shows negative divergence. The new year started in a negative notes for equities. Its first negative start after the year of 2008.

Support - 16,170 16,058 15,900
Resistance - 16,700
Close above 16,700, Dow will enter a new trend.
Recommendation - sell with sl 16700


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