Hoechstens normale Korrektur...
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Range FormedDow trades sideways, forms wide range within steep channel.From prior commentary, "...The fact that the index has formed a tight range at the highs indicates a building strength, which could make for further upside movement within the steep uptrend..." The Dow pulled back for the session, but basically traded sideways today, forming a wide trading range at the highs from 10,465 to 10,550, seen in the 15 Minute Chart. The range has formed within the steep channel that has continued to form over the course of the last seven weeks, seen in the 60 Minute Chart. A downside break from the range at 10,465 would cause of a break of the lower channel boundary, thus opening the door to a potentially sharp decline. Watch this level closely, as we will want to be "in" the market when this level is broken. However, an upside break through the top of the range at 10,550 will likely fuel a continuation of the current uptrend within the channel boundaries. Such a break could push the Dow back up toward the upper trend line of the channel at around 10,700 area. Short Term Dow Short term, the Dow has formed a clear trend line beneath the lows of the late-day rally, seen in the 1 Minute Chart. A downside break of the line at 10,520 will likely spark weakness for tomorrow's Open. Otherwise, look for continued upside movement above the line. Medium Term Dow In the medium term, we entered the market Short this morning at 10,488, but stopped out of the position with a 20 point loss. No other positions were triggered and we are now out of the market. We will look to enter Longs above 10,550, and Shorts below 10,465, with 20 point stops. NASDAQ & S&P The NASDAQ and S&P each pushed slowly, but steadily higher throughout the session today. Look for a continued upward push unless the lower trend lines are crossed tomorrow. * Summary The Dow has now formed a wide trading range at the highs within the steep channel, which implies continued strength in the medium term. An upside break through the top of the range at 10,550 will likely spark another big wave higher within the range, while a break through the lower trend line of the channel will signal weakness. 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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