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| Updated 8/13 for Monday's market. |  | ||||||||||||||||
Quiet SessionDow trades sideways, holds right at key 9,800 level.From prior commentary, "...The fact that the index has gotten a downside break from the bearish pennant implies a likely continuation lower in the medium term...However, the index must get a break through support at 9,800 if further weakness is to occur..." The Dow traded sideways the entire session today, holding precisely at the key 9,800 level, as seen in the 15 and 60 Minute Charts. The index gained 11 points for the session and ended the day holding at the lower boundary of a wide trading range that has formed from 9,800 to 9,950. We could see the Dow move higher within the range toward 9,950 Monday, especially if 9,875 is crossed to the upside. If 9,800 holds, we will likely see continued sideways movement within this range before another key move is seen. Keep an eye on 9,800 down, and 9,950 up, as a break at either of these levels could provide a solid move in the direction of the break. A downside break is the most likely scenario, however. Short Term Dow Short term, the Dow ended the day within the boundaries of a tight range from 9,780 to 9,830, seen in the 1 Minute Chart. Watch for a break from this range for short term direction at the Open Monday. Medium Term Dow In the medium term, we entered Shorts today at 9,800, but stopped out for a loss. We are again out of the market and will watch 9,875 down, and 9,875 up; using 20 point stops. NASDAQ & S&P The NASDAQ and S&P each traded sideways today, holding at the lows of their respective downmoves. Look for each to hold at the lows while a potential move brews. * Summary The Dow closed the session slightly higher today, but continues to hold near the lower boundary of the wide trading range at 9,800. Look for continued movement between 9,800 and 9,950 before another big medium term move occurs. Watch the boundaries Monday. Thanks for listening, and Good luck in your trading! Ed Downs with assistance from.. ** 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 _________________________ |
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