As predicted in my posting on 15 April 2010, the DJIA met resistance at Fibonacci 61.8% Retracement level and a bearish engulfing candlestick pattern was also formed at this confluence region. The light green horizontal support will be tested next if further weakness continues. Support failure here will test the dark blue trendline support. Bears will be victorious if this blue trendline breaks and challenge the next Fibonacci Retracement support at 50% level.

Any unexpected rebound from the current position must take out the 61.8% Fibonacci Retracement followed by the horizontal inverted head and shoulders measured move projection target as indicated by the red dotted horizontal line. Strong resistance is expected inside the orange rectangle confluence zone.

View chart at http://tactcharts.blogspot.com/2010/05/djia-weekly-chart-bearish-engulfing.html