| Updated 9/16 for Friday's market. |  | ||||||||||||||||
ConsolidatingDow trades sideways, holds within wider trading range.From prior commentary, "...The 60 Minute Chart shows the Dow may form a range at the highs from 10,215 to 10,350 before another big move occurs..." The Dow pushed sideways throughout the session today, as the index stayed within a tight range at the lows of yesterday's decline, as seen in the 15 Minute Chart. The index gained 13 points for the session, and now finds itself within the boundaries of a wide, downward-sloping trading range, seen in both the 15 and 60 Minute Charts. There are two contrasting scenarios to look out for as the index gears up for the next primary move. First, the Dow has formed a tight consolidation at the lows from 10.230 to 10,280 after getting a downside break from the bullish channel yesterday. Typically, this type of behavior leads to another push lower. A downside break through 10,215 will likely spark a continuation lower tomorrow. The second scenario to watch for is the wide, sloping trading range. If the Dow gets an upside break through the top of the tight consolidation at 10,280, we could see the index push higher within the range toward 10,325. Such movement will begin to solidify the bullish pennant consolidation, which holds strong rally potential. An upside break through 10,325 will make for another solid rally in the medium term. Short Term Dow Short term, we will watch the tight consolidation that has formed at the lows of the 5 Minute Chart from 10,230 to 10,280. A break from this range will signal direction for tomorrow's Open. Medium Term Dow In the medium term, we covered Shorts today at 10,270, giving us a breakeven trade. We are out of the market and will watch 10,330 up, and 10,215 down; using 20 point stops. NASDAQ & S&P The NASDAQ and S&P each gained on the session today, holding ground after yesterday's decline. Look for continued range movement as the market gears up for another solid move. * Summary The Dow ended the day within the boundaries of a tight consolidation, which we will watch tomorrow. A downside break from the range will likely spark a continuation lower; while an upside break will make for another move higher within the bullish trading range. Watch 10,215 down, and 10,280 up tomorrow. 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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