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| Updated 10/7 for Friday's market. |  | ||||||||||||||
Break at SupportDow breaks 10,150, pushes lower to the Close.From prior commentary, "...the Dow will likely continue its upward pursuit so long as it holds above 10,150...A break of this level will make for weakness..." The Dow sold off early in the session today, trading off of yesterday's highs to begin the day, as seen in the 15 and 60 Minute Charts. The index continued its downtrend throughout the session, which was accelerated by a downside break of key support at 10,150. The break of support fueled a sharp late-day decline, causing the Dow to end the session lower by 115 points. The fact that the Dow has broken through the key 10,150 level implies continued weakness into tomorrow's market, especially if a continuation pattern is formed at the current lows. Look for the index to remain weak below 10,150 tomorrow. A break back above 10,150 will indicate another near-term upmove. Short Term Dow Short term, the Dow has formed a clear upper trend line across the highs of the late-day decline, seen in the 1 Minute Chart. Watch for continued weakness below this line, unless 10,140 is crossed to the upside. Medium Term Dow In the medium term, we entered the market Short late in the session at 10,150 and are still in the trade. We will continue to hold stops at the entry for tomorrow's market, and will want to stay Short below 10,100. We will hold off on Longs, unless 10,175 is crossed to the upside; using 20 point stops. NASDAQ & S&P The NASDAQ and S&P each traded sharply lower today, with further weakness likely. The S&P has broken its wide consolidation to the downside, which implies continued weakness. The NASDAQ is holding at support, which we watch closely tomorrow. * Summary The Dow closed the session sharply lower today, after trending down throughout the day. A late-day break of key support at 10,150 caused an even further decline, which will likely extend into tomorrow's trading. Look for continued weakness below 10,150 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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