The Dow Jones Industrial Average has failed to break above a key resistance level, leaving it vulnerable to steep declines in the short term, Chris Zwermann, global strategist at Zwermann Financial, told CNBC Wednesday.
"The Dow hasn't really the power to jump over and this means we have the danger for the next few days," Zwermann said after pointing out the index had failed to rise above 11,450 points.
The Dow could slip to 11,200 or even 10,900 after failing at the key level, he said.
"Stock markets have some kind of a break here because they're not able to make new highs," he added.
In the longer term, Zwermann thinks the price of silver has a chance to go higher because the outlook for the dollar remains weak.
And the price of German bund futures have a chance to recover from their extensive declines while stocks are facing weakness, he added.
Sandy Jadeja, chief market strategist at Capital Market Services, also told CNBC that the Dow could be due for a decline in the short term.
