Dow Jones: Upside Break in Sichtweite

Still in the Range

Dow trades sideways, continues holding within wide range.

The Dow did indeed continue 'sloshing' around within the boundaries of the major range formed from 9,900 to 10,100, seen in the 15 and 60 Minute Charts. The index continues to hold within this range, which indicates that the Dow is still gathering steam for the potential break.

Look for continued sideways movement within the range until either the upper or lower boundary is crossed. A downside break is the most likely scenario, since the range has formed at the lows of the recent decline. Therefore, keep an eye on 9,900, as a break here will likely spark a steep decline.

An upside break is still likely, however, so watch 10,100 up Monday. An upside push through this level will make for a test of recent highs at around 10,500.

Short Term Dow

Short term, the Dow has formed a range from 9,940 to 9,985, seen in the 5 Minute Chart. Watch for a break from this range for direction Monday morning.

Medium Term Dow

In the medium term, we are still out of the market, since none of our entry levels were triggered. We will watch 9,900 down, and 10,120 up tomorrow; using 20 point stops.

NASDAQ & S&P

The S&P and NASDAQ each gained slightly for the day, but continue to trade within a wider range. Watch for continued sideways action until a clear and solid break from the range occurs. *

Summary

The Dow continues to hold within the boundaries of the wide, sloping range, seen in the 60 Minute Chart. Look for continued movement within the range until a decisive break is seen. A break from this range will likely spark a very solid move in the direction of the break next week.

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