| Updated 8/25 for Thursday's market. |  | ||||||||||||||||
Solid RallyDow breaks range to upside, rallies strongly to the Close.From prior commentary, "...the Dow continues to trade within the boundaries of 10,060 and 10,150...Look for continued consolidation activity until a clear break occurs. Such a break could spark sharp movement..." The Dow opened the session quietly this morning, as the index traded sideways within the boundaries of the wide consolidation, as seen in the 15 Minute Chart. However, the index eventually found strength and got a solid break through the top of the range, which sparked a solid move higher worth 83 points, seen in the 60 Minute Chart. The fact that the index has gotten an upside break implies a likely continuation higher within the current overall uptrend. However, the index has hit a clear resistance level at 10,200, which could pose a barrier to immediate upside movement. Look for a continuation pattern to form to imply continued strength. An upside push through 10,200 will make for a continuation higher, while a break below 10,150 will indicate a pull-back, likely toward 10,100. Otherwise, a break at 10,100 could make for a fairly sizeable decline. Short Term Dow Short term, the Dow got a downside break of the late-day uptrend at 10,180, seen in the 5 Minute Chart. This may preclude a likely downmove for tomorrow's Open. Look for overall weakness below 10,200. Medium Term Dow In the medium term, we entered the market Long today at 10,150 and are still in the trade. We will continue to hold stops at the entry for tomorrow's market, and will stay Long above 10,200. We will hold off on Longs, unless 10,100 is crossed to the downside; using 20 point stops. NASDAQ & S&P The NASDAQ and S&P each pushed higher today, breaking key ranges to the upside. Look for further uptrending activity to occur in the medium term. * Summary The Dow closed the session higher by 83 points today, as the index rallied through the top of the key consolidation. The upside break implies a likely continuation higher within the overall uptrend, but we may see a pull-back before another advance is seen. Look for continued strength above 10,100. 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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