| Updated 8/13 for Thursday's market. |  | ||||||||||||||||
Sideways DayDow trades sideways, holds above lower trend line.From prior commentary, "...The index has moved solidly higher off the 9,000 lows of last week and continues to make its way higher within the wide trading range that has formed from 9,000 to 9,360....We may see the index hold at the highs beneath resistance while a break or bounce is comtemplated..." The Dow held on to most of yesterday's gains and continues to hold at the highs of the recent upmove. The index basically traded sideways-to-down throughout the session to form a sloping range at the highs, seen in the 15 Minute Chart. Looking at this timeframe also shows that the Dow continues to trend higher above a clear trend line that has formed beneath the lows of the last six sessions. A downside break of this line at 9,225 will ikely send the index back down toward major support at 9,000. However, further upside move toward the key 9,360 resistance level is expected if the Dow can continue to hold above the lower trend line. The index will likely reach resistance in the near term, however, significant upside movement will not be seen unless 9,360 is decisively broken. Short Term Dow Short term, the Dow has formed a tight, downward-sloping consolidation at the highs of the 5 Minute Chart. A break downside break from the range at 9,225 will indicate weakness fairly early tomorrow. However, an upside break through the top of the consolidation at 9,300 will likely spark a move higher at the Open. Medium Term Dow We are still out of the market in the medium term, as none of our entry levels were triggered. We are will watch 9,200 down, and 9,375 up tomorrow, with 10 point stops. NASDAQ & S&P The NASDAQ traded sideways within a tight range today, while the S&P pushed slightly lower throughout the session. The watch the lower trend line in the S&P and the tight range for the NASDAQ tomorrow. * |
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MfG, ZiZo 
