|Updated 9/14 for Wednesday's market.|
Dow trades sideways, holds above clear lower channel boundary.
From prior commentary, "...The Dow closed the session barely higher today, but continues to hold within the current major uptrend. Look for the index to continue trending higher above the key lower trend line..."
The Dow opened the session quietly today, as the index pushed sideways within the boundaries of yesterday's intraday range, as seen in the 15 Minute Charts. The index gained slightly on the session, but is now hugging the major lower channel boundary, seen in the 15 and 60 Minute Charts.
We will watch this line closely tomorrow, as a downside break of 10,300 will cause a violation of the current uptrend. Such a break could spark a sharp decline in the near term.
Otherwise, if the index can continue holding above 10,300 tomorrow, further bullishness is likely, especially if 10,350 is broken to the upside.
Short Term Dow
Short term, the Dow has formed a tight range in the 5 Minute Chart from 10,305 to 10,340, which we will watch closely tomorrow morning. A break from this range will spark early direction at the Open.
Medium Term Dow
In the medium term, we are still out of the market, since none of our entry levels were triggered. We will now watch 10,350 up, and 10,300 down tomorrow; using 20 point stops.
NASDAQ & S&P
The NASDAQ and S&P each pushed sideways today, holding on to gains from the recent upmove. Each index continues to trend higher within the current channels, but watch the lower boundaries closely. *
The Dow is holding at the highs of the major upmove and has hit the major upper channel boundary from the Daily Chart. The index is also holding just above the clear lower trend line from the bullish upmove, which we will watch closely tomorrow. A break or bounce at 10,300 should provide key movement tomorrow.
Thanks for listening, and Good luck in your trading!
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** 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