| Updated 6/28 for Tuesday's market. |  | ||||||||||||||||
Pop and DropDow rallies at Open, but breaks intraday consolidation to downside en route to steep decline.From prior commentary, "...the index reversed down right off resistance at this level, setting the stage for a steady decline the remainder of the day...Look for the index to continue trending lower toward key support at 10,300..." The Dow opened the session rather strongly this morning and held at the highs throughout much of the day, forming a tight intraday consolidation, seen in both the 15 and 60 Minute Charts. However, a downside break from the consolidation at 10,430, sparked a sharp 100 point decline off the session highs late in the day, pushing the index back toward the key 10,300 support level. Look for the index to continue holding above the key 10,300 level, but also to continue trading in volatile fashion between the ranges of 10,300 and 10,500. We could see further volatility within this range, but a break from the range will very likely trigger a sharp move in the direction of the break. Watch this range for medium term direction. Short Term Dow Short term, the Dow ended the day within the boundaries of a very tight range from 10,340 to 10,370, seen in the 5 Minute Chart. Watch for a break from this range for short term direction. Medium Term Dow In the medium term, we covered our Shorts early in the session this morning at 10,430, giving us a breakeven trade. We later entered Longs at 10,450, but stopped out with a loss. We also entered Short at 10,385 and are still in the trade. We will continue to hold stops at the entry and will want to remain Short below 10,300. We will look to enter Longs above 10,500; using 20 point stops. NASDAQ & S&P The NASDAQ and S&P each ended the day lower after gapping up at the Open. Each filled their respective gapped late in the session, leading to weakness to the Close. Watch key support levels for tomorrow's action. * Summary The Dow ended the day lower after getting a downside break from a clear intraday consolidation. The index trended lower to the Close, ended the session above key support at 10,300. A downside break through 10,300 could unleash an even steeper decline. Watch for further volatility within the boundaries of 10,300 and 10,500. 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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