| Updated 7/1 for Friday's market. |  | ||||||||||||||||
At SupportDow sells off, falls to key support at 10,300.From prior commentary, "...The index continues to build steam within the wide trading range boundaries that have formed from 10,300 to 10,500...Look for the index to continue trading in much the same manner over the course of the next several days..." The Dow ended the day lower by 101 points today after getting a sharp decline early in the session, as seen in the 15 and 60 Minute Charts. The index held firmly at key support at 10,300, but is still vulnerable for a break tomorrow. Look for the index to continue holding at the lows within the boundaries of the intraday range formed from 10,275 to 10,350, seen in the 15 Minute Chart. A break from this range will likely lead to the day's direction tomorrow, with an upside break indicating strength, and a downside break sparking further weakness. The Daily Chart shows the Dow may be forming a head-and-shoulders pattern at the highs of the major uptrend, with a shoulder line at 10,300. A downside break through this support level could fuel an even steeper decline in the medium term. Short Term Dow Short term, the Dow is holding beneath a clear short term resistance level 10,350, seen in the 5 Minute Chart. Watch this level for movement at the Open. Medium Term Dow In the medium term, we entered the market Short at 10,300, but stopped out with a 20 point loss. We are out of the market and will watch 10,300 down, and 10,360 up tomorrow; using 20 point stops. NASDAQ & S&P The NASDAQ and S&P each pushed solidly lower today. Look for a continuation pattern to form to indicate a continuation tomorrow. Otherwise, further trading range movement is likely. * Summary The Dow closed the session much lower today after getting a large sell-off this morning. The index is currently holding at support at 10,300, which continues to be the key level to watch. Keep an eye on 10,300 and 10,360 tomorrow. 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 _________________________ |
| ||||||||||||||||
