Dow Jones Ausblick: "Das Original !!"

Holding

Dow trades quietly sideways, stays above resistance.

The Dow traded mostly sideways the entire session today, staying above the key 10,300 level throughout, as seen in the 15 and 60 Minute Charts. The index looks to be gearing up for another solid push, however, we must wait for a break through either 10,300 or 10,400 before we act.

A downside break below 10,300 will likely push the index back down toward 10,200 or beyond, while an upside break through 10,400 could spark a move toward 10,600. The Dow may continue trading sideways within the 10,300 to 10,400 window before a break either way is seen, however.

Short Term Dow

Short term, the Dow has formed a clear trend line across the highs of the late-day decline, seen in the 1 Minute Chart. An upside break through the line at 10,365 will make for strength at the Open.

Medium Term Dow

In the medium term, we closed overnight Longs today at the entry, giving us a breakeven trade. We later re-entered Long at 10,400, but stopped out with a 20 point loss. We are now out of the market and will watch 10,400 up, and 10,300 down, with 20 point stops.

NASDAQ & S&P

The NASDAQ and S&P each traded sideways throughout the session today, ending the day slightly lower. Look for continued sideways movement until a clear and solid break from the range occurs. *

Summary

The Dow continues to hold above the 10,300 level, which implies sustained strength. However, should the index break below this level, look for a sharp decline to follow. An upside push through 10,400 will make for another solid rally.

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