| Updated 6/23 for Thursday's market. |  | ||||||||||||||||
RallyDow quiet at Open, but rallies to the Close.From prior commentary, "... 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...." The Dow traded sideways for most of today's trading session below 10,400. It finally broke to the upside late in afternoon and rallied to the Close, ending the day over 84 points in the green. Looking at the 15 Minute Chart, you can see the index has formed a clear trend line across the lows of the up move off the lower range boundary. We expect a continued uptrend above this level at 10,410. However, a downside break there will likely fuel a move lower to support. The index broke through the upper boundary of its tight consolidation seen in the 15 Minute Chart at 10,440 this afternoon. This upside break pushed the index higher through the upper boundary of the wide range formed over the last two weeks between 10,300 and 10,440. This break indicates further strength for tomorrow. Short Term Dow Short term, the Dow is at a lower trend line formed across the lows of the sharp up move seen in the 1 Minute Chart at 10,474. Watch this level for a break or bounce tomorrow to indicate the direction at the Open. Medium Term Dow In the medium term, we entered the market Long at 10,450. We are still in this position and will be holding stops at the same level. We will watch 10,410 down tomorrow using 20 point stops. NASDAQ & S&P The S&P and NASDAQ each mirrored the Dow as the traded sideways throughout most of the session, but broke out of the consolidations to rally to the close. They have also broken through the wide range. * Summary The Dow traded sideways for most of the session, but broke through the upper range boundaries to rally to the Close. The index has formed a clear lower trend line across the lows. Watch for continued strength above the trend line 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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