Dow Jones: Langsam, aber sicher...

Slow Uptrend

Dow pushes slowly higher, tacks on 63 point gain.

The Dow rallied sharply in the opening minutes of trading today, but slowed the rest of the session, trading in a wide range at the highs the entire day, seen in the 15 Minute Chart. The index ended the day near the highs of the session, gaining 63 points for the day, and continues to look strong within the overall uptrending channel, seen in the 60 Minute Chart.

The range that has formed spans from 10,540 to 10,590 and implies continued upside movement within the channel boundaries. An upside break through the top of the range will spark a continuation higher in the medium term.

However, we will continue to monitor the lower boundary of the steep channel, as a clear and solid break of the line will fuel a large retracement. Watch 10,525, as a break here could begin the descent. A break through 10,500 will be an even bigger indication of weakness.

Short Term Dow

Short term, the Dow has formed a tight consolidation at the highs of the 1 Minute Chart from 10,575 to 10,588. An upside break is implied, but watch both boundaries for direction at the Open.

Medium Term Dow

In the medium term, we are out of the market, as none of our entry levels were triggered. A Long nearly triggered late in the afternoon, but the 30 Minute Rule went into effect less than a minute before the potential trigger occurred. We are out of the market and will watch 10,600 up, and 10,525 down, with 20 point stops.

NASDAQ & S&P

The NASDAQ and S&P each trended higher alongside the Dow today, gaining for the session. Look for continued strength within the respective channels. *

Summary

The Dow trended slowly higher throughout the session after rallying out of the gates at the Open. The index ended the day at the session highs and will likely continue higher if it can break through the upper boundary of the current consolidation at 10,590. Look for a continued uptrend to occur above the lower channel boundary at 10,525.

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