Dow Jones: Im Uptrend konsolidiert

Consolidating

Dow trades sideways within tight range, consolidation forming.

The Dow pulled back slightly for the session today, losing about 25 points, and is now forming a tight consolidation at the highs of the current upswing, seen in the 15 Minute Chart. The index continues to remain near the highs of every upswing, as a consolidation is typically followed by further upside movement.

The Dow continues to hold above the steep lower trend line, seen beneath the lows of the 15 and 60 Minute Charts. Look for continued strength above this line. If 10,400 is crossed to the downside, we would expect to see a retracement begin there.

Short Term Dow

Short term, the Dow may be forming a higher low above 10,419, seen in the 1 Minute Chart. Such a pattern implies strength for tomorrow's Open. Otherwise, a break below 10,419 will indicate weakness.

Medium Term Dow

In the medium term, we are still Long the Dow from 10,190 and will hold stops at 10,400, locking in 210 points of profit for the trade to this point. We will want to stay Long (or add to Longs) above 10,440, and will look to enter Shorts below 10,400, with 20 point stops.

NASDAQ & S&P

The NASDAQ and S&P each traded quietly sideways throughout the session today, forming tight consolidations at the highs. Look for a break from the consolidations for direction tomorrow. *

Summary

The Dow is holding at the highs within the boundaries of a tight consolidation. An upside continuation is most likely in the medium term, but a break of the major lower trend line will signal weakness. A break below 10,400 will signal such weakness.

Thanks for listening, and Good luck in your trading..

Ed Downs
edowns@nirvsys.com

with assistance from..
Frank Ochoa, Market Analyst fochoa@nirvsys.com

** 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