Dow Jones: So entsteht ein Uptrend

Continued Strength

Dow breaks through resistance, pushes higher to the Close.

The 10,100 level showed today that it was indeed a key fulcrum in the charts, as seen in the 15 Minute Chart. The Dow traded sideways beneath resistance at 10,100 throughout the session today before finally getting an upside break through the level late in the day. The break sparked a solid move to the Close, giving the Dow a 59 point gain for the day.

The fact that the Dow has now broken through resistance at 10,100 implies strength in the near term, and possibly the medium term. Look for the Dow to remain strong above resistance tomorrow, especially of the index can form a continuation pattern above this level. Such a pattern would indicate an even further advance. Otherwise, a break back below 10,100 will make for another wave lower, especially if 10,080 is violated.

Short Term Dow

Short term, the Dow has formed a clear trend line beneath the lows of today's late-day advance, seen in the 5 Minute Chart. Watch for continued strength tomorrow morning, unless 10,120 is crossed to the downside.

Medium Term Dow

In the medium term, we closed Longs this morning at 10,062, giving us a breakeven trade for the position. No other trades were triggered, and we are now out of the market. We will watch 10,150 up, and 10,090 down; using 20 point stops.

NASDAQ & S&P

The NASDAQ led the general market higher today, as each index followed its lead. The NASDAQ and S&P each closed the day near the session's highs. Look for the formation of continuation patterns to imply further strength tomorrow. *

Summary

The Dow closed the day sharply higher today after getting a clean break through resistance at 10,100. The upside sparked a move higher to the Close, where we will watch for a possible continuation pattern to form. Look for continued strength above 10,100 tomorrow, unless a break back below this level occurs.

Thanks for listening, and Good luck in your trading!

Ed Downs
edowns@nirvsys.com

with assistance from..
Frank Ochoa, Market Analyst
fochoa@nirvsys.com

** 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