| Updated 2/26 for Monday's market. |  | ||||||||||||||
Strong AdvanceDow approaching multi-year highs.From prior commentary, "... a strong penetration above the upper boundary of the trend channel at 10,750 could invalidate the present bearish setup and trigger a rally toward 10,850...." The Dow opened today's session with a relatively neutral stance. However, shortly after the open the Dow embarked upon a strong bullish continuation, penetrating above the upper boundary of the upward sloping trend channel seen in the 15 and 60 minute charts. This pronounced advance affectively invalidates the previously established bearish setup and resulted in a steady upward trend toward 52 week highs. Today's advance has clearly placed the Dow within a monumental position. The Dow ended today's session in close proximity to recently established resistance near 10,860. An agressive strike above 10,860 could propel the Dow to new multi-year highs and an instigate a new bullish phase. However, the magnitude of the recent two day advance and the Dow's close proximity to majority resistance merits a degree of caution. A failed attempt to penetrate above 10,860 could result in a sharp reversal toward near term support at 10,750. Further weakness beneath 10,750 could trigger a strong capitulation toward 10,600. Within the context of the current situation, the Dow is most likely to experience a period of consolidation and/or mild retracement before proceeding with its next primary direction. Short Term Dow Short term, the Dow continued to trend steeply upward. Look for continued strength above 10,820. A penetration below 10,820 may signify the beginning of a mild retracement. Medium Term Dow In the medium term, we remain long the Dow from 10,725. We have advanced our stop to 10,800. We will wish to maintain our long position above 10,860. Conversely, we will consider a short position below 10,750. NASDAQ & S&P The NASDAQ and S&P each showed a degree of strength today, closing near intraday highs. We will continue to monitor the indexes' intraday activity as they advance toward key resistance. Summary The Dow advanced strongly today, placing it in close proximity to major resistance. Intraday movement near the 10,860 resistance level will be of key importance for Monday's market. Watch 10,860 up, and 10,750 down tomorrow.
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 _________________________ |
| ||||||||||||||
