Updated 12/29 for Tuesday's market. | |||||||||||||||||
RallyDow trades higher off lower channel boundary, Rallies to close.From prior commentary, "...The 15 and 60 Minute Charts each show that the Dow continues to trade within a clear and solid uptrend. Look for the index to continue trending higher in the medium term, especially if the Dow continues to hold above 10,300..." The Dow opened the session strong this morning off its lower channel boundary. It continued to trade higher within the clear uptrend, ending the day over 125 points in the green. The index has continued solidly higher within its channel seen in the 60 minute chart. Therefore, a downside break of 10,360 will like spark an overdue retracement Tuesday. Short Term Dow Short term, the Dow has formed a clear trend line across the lows in the 5 Minute Chart at 10,420. Watch for a break at this trend line to indicate short term direction Tuesday. Medium Term Dow In the medium term, we are still Long the Dow from 10,190 and will hold stops at 10,350. We will want to stay Long (or add to Longs) above 10,460, and will look to enter Shorts below 10,350, with 20 point stops. NASDAQ & S&P The NASDAQ and S&P each mirrored the Dow today, and traded higher within their channels. A break of the lower boundary will make for weakness Tuesday. * Summary The Dow continues to to trend higher within its clear uptrend, which implies retained strength. Look for the index to trade higher until its lower boundary level at 10,360 is crossed to the downside. 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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