DOW JONES Industrials Selloff Forecast (DIA As Proxy): The SetupWith the DOW positive for the year 2016, a Bearish Bat formation is developing. Here is the step by step setup: A 50% retracement of Impulse leg X to A is DOW 16,576; the C to B impulse leg approximated a point D downward reversal at 17,150 (a Fibonacci 1.618 level); the X to A impulse leg suggested a downward reversal at 17,233 (a Fibonacci .786 level); the DOW reversal at point D went slightly higher, but should retrace to the .786 level of the C to D impulse leg, or 15,976. If support fails in this area, a 1.618 retracement is approximately 14,231. The current RSI is coming off its highest levels of 2016, suggesting an extremely overbought condition. I do own DOG, as well as SH and RWM. These three issues rise as the DOW 30, S&P 500, and Russell 2000 fall. Needless to say I think the markets are setting up for some large declines. All of my technical work is based on daily chart time calculations. I offer these suggestions for your consideration. Best regards, Don.