DJIA: Hoher Level gehalten, Ausbruch erwartet !

Holding..

Dow pushes sideways within tight range, still gearing up for potential break.

The Dow held beneath the key 10,460 level the entire session today, which put a damper on a possible upside continuation, as seen in the 15 Minute Chart. Instead, the index broke 10,420 early in the session, which set the tone for a slightly negative session, as the index declined just 14 points.

Looking at the overall picture, however, shows that the Dow is still in position to get a solid upside break. The index is holding above 10,400 and has formed a tight range at the highs of the current upmove. We will continue to watch 10,460 Tuesday, as a break here will likely spark a sharp advance.

Conversely, a downside break through 10,400 will likely push the Dow back down toward recent lows at around 10,320. A break at 10,320 will indicate an even further decline. Look for continued volatility within this range, however.

Short Term Dow

Short term, the Dow looks to be forming a higher low above 10,430, seen in the 5 Minute Chart. An upside break through 10,450 will confirm such a pattern, and will spark strength at the Open.

Medium Term Dow

In the medium term, we closed Longs today at 10,420, giving us a 20 point loss for the trade. We then entered the market Short at 10,420, but the trade also faltered.

We are now out of the market and will watch 10,460 up, and 10,400 down; using 20 point stops.

NASDAQ & S&P

The NASDAQ led the way today, as the index pushed slowly, but steadily higher throughout the session. The S&P held its ground, and currently sits at the highs of the recent upmove. Watch for a continuation tomorrow. *

Summary

The Dow pulled back slightly off Friday's highs, but continues to hold near the highs of the overall uptrend. An upside break through 10,460 will likely spark a solid push higher tomorrow, while a break below 10,400 will indicate weakness.

Thanks for listening, and Good luck in your trading..

Ed Downs
edowns@nirvsys.com

with assistance from..
Frank Ochoa, Market Analyst
fochoa@nirvsys.com

** Note: We are now posting Index entries and exits in Real Time, through our new Intraday Index Alerts service. To learn more about the service, visit SignalWatch.com and select Intraday Alerts from the main navigation bar. - SW Team