| Updated 11/12 for Thursday's market. |  | ||||||||||||||||
Sharp RallyDow rallies throughout session, gains 111 points.From prior commentary, "...Look for further weakness to brew below the 9,800 level in the near term. An upside push through 9,800 will lead to strength..." The Dow opened the session higher and broke through 9,800, which sparked a solid advance the throughout the session, as seen in the 15 and 60 Minute Charts. The index ended the day at the session highs, gaining 111 points for the day. Looking at the 60 Minute Chart shows that the Dow has formed a wide, expanding range at the highs from 9,700 to 9,900. The index has traded within this expanding range for nearly two weaks now, and will likely continue to do so until a solid break from the range is seen. Expanding ranges are typically bearish, but this one has a flat resistance, so we could see a break on either side. The most likely break is down, due to the long channels that have formed on the other indexes. In the short term, we will likely see further upside movement toward resistance at 9,900 tomorrow. This will be a key level to watch. An upside break through 9,900 will likely spark a continuation rally tomorrow. If not, look for a reversal back toward the bottom of the expanding range. Short Term Dow Short term, the Dow has formed a tigth range at the highs of the 1 Minute Chart from 9,837 to 9,860. Watch for a break from this range to gauge strength tomorrow morning. Medium Term Dow In the medium term, we covered Shorts this morning at 9,760, giving us a 10 point gain for the trade. We later entered the market Long at 9,890 and are still in the position. We will move our stops up to 9,800 tomorrow, and will move them up again to 9,860 if the index reaches 9,900 in anticipation of a reversal at resistance. We want to stay Long above 9,900 and will look to Short below 9,800, with 20 point stops. NASDAQ & S&P The NASDAQ and S&P each pushed solidly higher throughout the session today, forming clear lower trend lines beneath the rally. Each index is now approaching key resistance, which we will watch closely. * Summary The Dow pushed higher at the Open and got the break through 9,800, sparking a solid rally to the Close. Look for further upside toward resistance at 9,900 tomorrow. This level will be key. 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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