| Updated 6/22 for Wednesday's market. |  | ||||||||||||||||
Range BoundDow drops at Open, but rallies to the Close.From prior commentary, "... This break implies further weakness to the lower range boundary at 10,300. We can expect the index to remain volatile within this wide range between 10,300 and 10,440 before a clear break occurs..." The Dow opened weak this morning and dropped to its lower range boundary at 10,300. It then reversed off that level and traded higher to the Close, ending the day a little over 23 points in the green. The index has formed a tight consolidation seen in the 15 Minute Chart between 10,380 and 10,440. An upside break will push the index higher to 10,440, while a downside break will lead to the lower boundary at 10,300. Looking at the 60 Minute Chart, you can see that the Dow has been trading in a volatile manner within the wide range formed between 10,300 and 10,440. We can expect continued movement within the boundaries until a clear break occurs. Such a break will spark a move in the same direction. Short Term Dow Short term, the Dow us at a minor resistnace level at 10,100. Watch for a break or bounce at this level at the Open to indicate the direction for tomorrow. Medium Term Dow In the medium term, we are still out of the market as none of our entries were triggered. We will continue to watch 10,450 up, and 10,300 down; using 20 point stops. NASDAQ & S&P The S&P and NASDAQ also dropped at the Open, but turned up off lower trend lines and traded higher to the Close. Each index is also trading within a wide range. Watch for continued volatility until a break occurs. * Summary The Dow traded to the lower range boundaries this morning, but reversed to close the day in the middle of its wide range. Watch for continued movement within the range tomorrow until a strong break occurs. 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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