Steve O’Hare, of First4Trading.net, is looking to sell into rallies on the Dow30 (US 30 index). 

He says price action has been contained since Q3 2015 in a slightly positive sideward moving channel.

Negative price action continued into this week with a rejection of the previous day’s rally and a head & shoulders formation is developing. He expects downward moves to continue.

O’Hare plans to sell in front of 17,785 and 17,845 with a stop being a move above 17,935. His targets are 17,550 and 17,000.