...oder der Anfang von Ende?
| Updated 6/3 for Friday's market. |  | ||||||||||||||||
Pull-BackDow pulls back from highs, forms bearish pattern.From prior commentary, "...Look for the Dow to continue trending higher toward the upper boundary of the major downward-sloping range...Otherwise, a break below 10,225 will indicate weakness..." The Dow traded both lower and higher today, but ultimately broke 10,225 to the downside, making for weakness to the Close, as seen in the 15 Minute Chart. The Dow lost 67 points for the session, but could be gearing up for an even sharper decline. The 15 and 60 Minute Charts show that the Dow has formed an upward-sloping consolidation at the highs of the recent advance. This pattern is typically bearish and will likely lead to a push lower in the near term. A downside break from the pattern at 10,170 will likely push the Dow lower within the current overall uptrend, which could spark future strength. Look for the index to continue trending sideways-to-up if the 10,250 level is violated tomorrow. Short Term Dow Short term, the Dow broke a clear short term support level at 10,215 this afternoon, seen in the 5 Minute Chart. Look for continued weakness below this level tomorrow morning. Medium Term Dow In the medium term, we closed Longs this morning at 10,235, giving us a 7 point loss. We later entered the market Short at 10,224, but stopped out with a 20 point loss. We are out of the market and will watch 10,250 up, and 10,170 down; using 20 point stops. NASDAQ & S&P The S&P trended slowly lower today, while the NASDAQ sold off in heavier fashion. The NASDAQ looks to be forming a highly bearish pattern, which could spark further weakness. * Summary The Dow ended the day lower after forming a double top today, sparking a 67 point decline. A downside break through the bottom of the sloping range at 10,170 will likely make for continued weakness tomorrow. Otherwise, a break through 10,250 will indicate continued upside movement. 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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