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| Updated 8/26 for Friday's market. |  | ||||||||||||||||
Holding..Dow holds at highs, stays beneath key 10,200 level.From prior commentary, "...the index has hit a clear resistance level at 10,200, which could pose a barrier to immediate upside movement. Look for a continuation pattern to form to imply continued strength..." The Dow traded sideways the entire session today, forming a very tight range at the highs from 10,150 to 10,200, as seen in the 15 and 60 Minute Charts. The index ended the day lower by just 8 points, but may be gearing up for another solid advance. The fact that the range has formed at the highs implies continued overall strength. An upside break through the top of the range and through resistance at 10,200 will likely spark a solid continuation higher tomorrow. However, we will keep a close watch on the lower boundary of the consolidation at 10,150, as a downside break here could cause a rather sizeable retracement. Also, the Dow has formed a clear trend line beneath the lows of the recent two-week upmove, seen in both the 15 and 60 Minute Charts. A break of this line, also at 10,150, will indicate a likely change of trend. Short Term Dow Short term, we will watch the tight consolidation that has formed at the highs of the 5 Minute Chart from 10,155 to 10,200. Watch for a break from this range for direction at the Open. Medium Term Dow In the medium term, we are still Long the Dow from 10,150 and will continue to hold stops at the entry for tomorrow's market. We will want to stay Long above 10,200, and will enter Shorts below 10,150; using 20 point stops. NASDAQ & S&P The NASDAQ and S&P each traded flat on the session, forming tight ranges at the highs. Look for a break from the consolidations for movement. * Summary The Dow ended the day just the way it began: quietly. The index continues to hold at the highs just beneath key resistance at 10,200, which we will watch closely tomorrow. An upside break through resistance will make for continued strength; while a break below 10,150 will indicate a likely retracement. 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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