[pcabc]

If Dow closes below 17,200 and SPX below 2020 then we have a high probability of the second leg down in the bear market. I'm looking to take advantage of the high volatility by adding to shorts on a DOW rally of 200 points (taking it back towards 17,600).

If you did that you would be shorting when the index was above its MA, albeit a falling one. That said, recent limited experience with short index ETFs shows that buying when pulling back to the MA is much lower risk.