Dow Jones: Still Short

Continuation

Dow opens session lower, continues down throughout the day.

The Dow opened the session lower this morning and followed through to the downside throughout the day, as seen in the 15 and 60 Minute Charts. The index sold off another 73 points after declining sharply lower the prior session and is now approaching a clear support level at 10,400, seen in the Daily Chart.

The index has now sold off over 200 points in just two sessions, which means we could begin to see a period of sideways movement while the index digests the prior move. Watch for a consolidation to form at the lows to indicate continued weakness. Otherwise, an upside move through 10,525 will indicate strength.

Short Term Dow

Short term, the Dow has formed a clear trend line across the highs of today's downmove, seen in the 5 Minute Chart. An upside break through 10,475 will indicate strength at the Open tomorrow morning.

Medium Term Dow

In the medium term, we are still Short the Dow from 10,550 and will move stops down to 10,525 to lock in some of the profit, while allowing room to run to the downside. We will stay Short below 10,400, and will look for Longs above 10,525, with 20 point stops.

NASDAQ & S&P

The NASDAQ and S&P continued lower alongside the Dow today. Look for the formation of a pattern at the lows to indicate near-term direction. *

Summary

The Dow continued lower throughout the session today, marking another steady decline. Look for the index to begin forming a continuation pattern while the market digests the prior move.

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