| Updated 1/14 for Thursday's market. |  | ||||||||||||||||
RallyDow breaks consolidation to upside, rallies to the Close.From prior commentary, "...Look for a continued downtrend to occur until the index forms a base at support...A solid upside push through 10,500 could spark the formation of a wide trading range at the highs of the major uptrend..." The Dow seems to have found support at around 10,375, and rallied to gain over 100 points for the session, as seen in the 15 and 60 Minute Charts. Today's rally began at the open, hesitated, and resumed after breaking an intraday consolidation to the upside. Looking at the 60 Minute Chart, you see that the Dow appears to be forming a wide trading range at the highs of the major uptrend from 10,375 to 10,590. This will likely be the range that the Dow stays witin until the index can establish another medium term trend. Look for the Dow to trade sideways within the range for quiet some time until a clear and solid break occurs. An upside break through the top of the range at 10,600 will make for further upside movement, while a break below 10,500 will make for weakness toward support. Short Term Dow Short term, the Dow has formed a tight consolidation at the highs of the 1 Minute Chart from 10,530 to 10,550. Watch for a break from this range for short term direction tomorrow morning. Medium Term Dow In the medium term, we covered Shorts this morning at 10,442, giving us a 2 point loss for the trade. We later entered the market Long at 10,500, but stopped out. We re-entered Long at 10,522 and are still in the trade, with "breakeven" stops at the entry. We will want to stay Long above 10,600, and will look for Shorts below 10,500, with 20 point stops. NASDAQ & S&P The NASDAQ and S&P each trended higher today, with each ended the session at the relative highs. Look for continued movement within the wide trading range until eithe of the boundaries are broken. * Summary The Dow rallied off support today, forming the beginning of what will likely become a wide trading range at the highs. Look for the index to remain within this range until another medium term trend is established. 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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Gruss,
Parocorp
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