Dow Jones technically bearish

DJ Resistance:     17,151.57    All-time record high
                               17,130         All-time closing high
                               16,877
                               16,743        Strong May peak
                               16,588        Strong last year peak
                               16,450        Light

DJ Support:           16,370        Light
                               16,343        Strong 50 days MA
                               16,015        Very strong

Technical Analysis:
The breakout DJ16,743 and DJ16,580 to the downside that we have witnessed from last Thursday put the DJIA in a bearish mood. Bears battled bulls in those levels which means presence of a lot of sellers. The technically damages are heavy in the picture.
The positive trend line coming during the last six months is broken but the last five years and one year positive trend lines are still in play.
DJIA needs to overcome DJ16,743 or at least DJ16,588 to stabilize.
The last six days volume is acceptable, let's say normal and we got a considerable downside movement.
You can realize the importance of 50 days moving average, once broke the indicator acting as support the index came down (watch 1 year daily chart).
The trend in the short term is to the downside.
Please click over the charts to enlarge them.

Fundamentals:
We are in August, difficult month, and waiting for important economic news this and next week. Earnings season is still alive.
The geopolitical, corporate earnings and the possibility for a rate hike played heavy against the market. The current setback is important and could indicate the trend in the short term. What has impressed me is the presence of sellers in the technical levels which is the only explanation for the breakouts. It shows a tidy market pointing down in the short term.
Dear traders and investors, August is a difficult month for trading, we are at the beginning of the "Summer Doldrums". Let's see if the DJIA and the other two index could get stabilization. We have to be prepared for the typical erratic movement in August. The historical data shows August as a good month to get profitability, the problem is that it is easy to make mistakes due to the nature of this month. Keep calm and cool!

Good luck, viel Glueck, buona fortuna, buena suerte, bonne chance!

Ulises