Dow Jones seem to have topped out after retracing more than 90% of it fall from May 2011 top to Aug 2011 low. The entire fall from May to Aug 2011 is labeled as Wave 1 and the Current rise is wave 2 which might have completed at today's high of 12841.
This wave 2 as a complex corrective of W-X-Y looks complete and a deeper correction in wave three down shall come soon.
RSI and ROC are showing negative divergence and this divergence shall work and the trend will reverse to down upon break below the upward rising channel at 12600.. Break below 12280 the will further confirm the correction.
The view will get negated above 12876. Above 12876 we will look for much bullish alternatives.
So lets wait and watch.
Thanks & Regards,