| Updated 11/10 for Tuesday's market. |  | ||||||||||||||||
Down DayDow pushes lower within wide range, breaks support.From prior commentary, "...The index has now established a wide trading range from 9,770 to 9,900...A downside break at support at 9,770 will likely make for a much deeper retracement..." The Dow opened the session weak this morning and began to sell off toward the lower boundary of the wide trading range that had formed from 9,770 to 9,900, seen in the 15 and 60 Minute Charts. The index eventually reached support at 9,770 where it held for a short period before finally resuming the move lower to the Close, losing 53 points for the day. Today's downmove could lead to an even further decline toward the major lower trend line at about 9,650, seen in the Daily and Weekly Charts. The index has trended sharply higher above this key trend line since March and will likely continue to do so until this line is broken to the downside. However, we could see a test of the line in the near term at 9,650. The fact that the Dow has broken support at 9,770 indicates further weakness for tomorrow's trading, especially if the index breaks and holds below 9,700. Otherwise, look for the index to form a range at the lows before direction is decided. An upside break back above 9,800 will indicate strength. Short Term Dow Short term, the Dow has formed a tight range at the lows of the 5 Minute Chart from 9,735 to 9,785. Watch for a break from this range for direction tomorrow morning. Medium Term Dow In the medium term, we entered the market Short today at 9,770 and are still in the position. We will continue to hold stops at the entry for tomorrow's market and will look for Longs above 9,800, using 20 point stops. NASDAQ & S&P The NASDAQ and S&P each trended lower toward clear support today, which we will watch closely for tomorrow's market. * Summary The Dow trended lower throughout the session today, selling off 53 points by the session close. Since the index has broken support at 9,770, look for continued weakness toward the major lower trend line in the near term. 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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MfG, ZiZo | Update: www.scalpgroup.de
