Dow Jones: Uptrend bleibt bestehen...

Rally

Dow rallies throughout session, ends day at key upper trend line.

The Dow clearly broke through 10,300 today, sparking a sharp move higher worth 148 points for the session, as seen in the 15 and 60 Minute Charts. The Dow traded steadily higher throughout the session, ending the day at the session highs.

The Daily Chart shows the Dow has finally reached the upper boundary of the major downward-sloping trading range at 10,400. This pattern is highly bullish for the long term. An upside push through 10,400 and eventually 10,500 would indicate another long term move higher for the Dow. However, we could see the index hold within the range boundaries before another decisive move is seen.

A downside reversal off the 10,400 level could make for another wave lower within the range. Watch for a break through 10,250 to indicate weakness.

Short Term Dow

Short term, the Dow formed a clear short term lower trend line beneath the lows of the late-day upmove, seen in the 1 Minute Chart. A downside break of the line at 10,380 will likely cause weakness tomorrow morning.

Medium Term Dow

In the medium term, we entered the market Long this morning at 10,326 and are still in the trade. We will move our stops up to 10,350 for tomorrow's market. We will want to stay Long above 10,400, and will look for Shorts below 10,250; using 20 point stops.

NASDAQ & S&P

The S&P and NASDAQ each rallied sharply throughout the session, ending at the day's highs. Look for a continuation pattern to form to indicate continued strength. *

Summary

The Dow rallied throughout the session today, gaining 148 points for the day. The index ended the day right at a clear upper trend line at 10,400, which is clearly a crossroads in the charts. A break or bounce at this level could spark a new medium term move. Look for the index to consolidate at the highs before a key move is seen.

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

Quiet Session

Dow trends slowly higher, breaks 10,400.

The Dow moved slowly higher today, as the index broke through the major 10,400 level en route to a 41 point gain, as seen in the 15 and 60 Minute Charts. The index has not moved far from 10,400 level, however, as the Dow continues to hold at the key upper trend line of the major trading range, seen in the Daily Chart.

We could see the Dow continue to hold at the highs as a consolidation develops. Such a range would indicate continued strength in the medium term. However, a break below 10,350 will likely make for weakness within the current uptrend.

Short Term Dow

Short term, the Dow has formed a clear trend line beneath the lows of the 5 and 15 Minute Charts. A break of this line at 10,375 will likely make for weakness tomorrow morning.

Medium Term Dow

In the medium term, we closed Longs this morning at 10,350, giving us a 24 point gain. We later re-entered Longs at 10,400, but stopped out with a breakeven trade. We are now out of the market and will watch 10,450 up, and 10,350 down; using 20 point stops.

NASDAQ & S&P

The S&P and NASDAQ each gained slightly for the session, continuing to hold on to yesterday's gains. Look for continued strength unless key lower levels are crossed. *

Summary

The Dow pushed higher today, gaining 41 points for the day. The index is now holding above the key 10,400 level and will likely continue higher should the 10,350 level hold up. Otherwise, a break here will indicate weakness.

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