| Updated 8/11 for Thursday's market. |  | ||||||||||||||||
Pennant FormedDow trends slowly sideways, forms upward-sloping range.From prior commentary, "...The upside break out of the range implies further strength in the medium term. The index has formed a trend line across the lows seen in the 60 Minute Chart at 9,870. Watch for further strength above this level..." The Dow opened the session lower this morning, but eventually moved higher off the lows to end the session virtually flat, as seen in the 15 and 60 Minute Charts. The index is now forming a clear, upward-sloping consolidation at the lows of the recent decline. Typically, this type of consolidation breaks to the downside, therefore we will watch the lower boundary of the range at 9,850 for a downside break to indicate weakness. Such a break will likely make for a fairly strong move lower. However, the consolidation may continue to develop at the lows before a break either way occurs. Look for continued sideways movement within the range until a break occurs. An upside break and push through 10,000 will make for strength. Short Term Dow Short term, the Dow has formed a tight range from 9,920 to 9,955 at the highs of the 1 Minute Chart. Watch for a break from this range for direction tomorrow morning. Medium Term Dow In the medium term, we closed Longs this morning at the Open at 9,890, giving us a 10 point loss for the trade. We are now out of the market and will watch 10,000 up, and 9,850 down; using 20 point stops. NASDAQ & S&P The NASDAQ took a sharp loss today; while the S&P traded slowly sideways-to-down. Each index continues to hold within a general consolidation range, which we will watch closely tomorrow. * Summary The Dow ended the session just 6 points lower today, but may be gearing up for an even larger decline in the near term. Look for continued sideways movement within the upward-sloping consolidation before another big move occurs. A break from this range should provide solid movement. 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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