| Updated 8/16 for Tuesday's market. |  | ||||||||||||||||
Rally to ResistanceDow breaks 9,875, rallies to resistance.From prior commentary, "...We could see the Dow move higher within the range toward 9,950 Monday, especially if 9,875 is crossed to the upside..." The Dow got the upside break through 9,875 this morning, which sparked a solid rally throughout the morning worth 129 points, as seen in the 15 and 60 Minute Charts. The index rallied right up to the key 9,950 resistance level, where it is currently holding. The index has reached the upper boundary of the wide trading range that has formed from 9,800 to 9,950. A move away from the 9,950 level will dictate whether we move lower within the range or rally higher toward a key upper trend line at about 10,050, seen in the 60 Minute Chart. If the index can hold above 9,900 tomorrow, we could see movement toward 10,050. Otherwise, a break below 9,900 will make for another move back down toward 9,800. Look for continued sideways movement at the highs before such a move occurs. Short Term Dow Short term, the Dow ended the day above a clear short term support level at 9,930, seen in the 1 Minute Chart. Watch for strength above this level, unless a downside break occurs. Medium Term Dow In the medium term, we entered the Dow Long today at 9,883 and are still in the trade. We will move our stops up to 9,900 for tomorrow's market, and will want to stay Long above 10,000. We will look to enter Shorts below 9,900; using 20 point stops. NASDAQ & S&P The NASDAQ and S&P each rallied alongside the Dow today, gaining to the Close. Each is currently holding at resistance, which we will watch closely tomorrow. * Summary The Dow rallied throughout the morning today, closing the session with a triple-digit gain. The index is currently holding right at the upper boundary of a clear trading range at around 9,950. Watch for a move away from this level tomorrow, as a break or bounce here will make for another solid move. 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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