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O'Hare: Dow down as global equities come under pressure

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Steve O'Hare explains why he's anticipating setting shorts in the Dow index against a negative view on global equities: "Over the last couple of weeks the market has breached the downside of a 6 year bullish channel and this compounds my negative medium term bias." says Steve.

Steve expects "a barrage" of downward pressure to accelerate over the coming weeks and believes the possibility of a FED rate rise could have a negative impact on stocks.
 
"The panic sell-off from August 20th saw prices drop over 2000 points within a few days. The price action since then has failed to hold above 16700 despite a couple of attempts. A trend of higher lows has formed an ascending triangle which in turn completes a bearish pennant.
We require confirmation of this formation with a close below the lower trend line."
 
Setting shorts on a close below 16000, for a measured move towards 14500, a price not seen since early 2013 and possibly towards 13820 which would only equate to a 38.2% fibonacci retracement of this 6 year bull run.
The stop on this trade would be a move back above 16700