Dow Jones: Zurueck in den Uptrend ?

Range Bound

Dow forms tight consolidation at upper range boundary. Watch boundaries for a break.

The Dow traded sideways today forming a tight consolidation seen in the 15 minute chart. The index closed at the upper boundary of the sloping range, ending the day 35 points in the green.

Looking at the 15 and 60 Minute Chart, you can see the index has been trading in the wide range at the lows between 10,525 and 10,625 over the last four trading sessions. We could see the index continue to trade sideways within this range tomorrow before a strong break occurs.

An upside move through the upper boundary at 10,625 would indicate a push higher to resistance at 10,750. Conversely, a pull back off the upper level will likely spur a move lower to the lower boundary.

Short Term Dow

Short term, the Dow has formed a clear lower trend line across the lows of the upmove in the 5 minute chart at 10,600. Watch for a break or bounce at this level. A break at this level will indicate weakness at the Open.

Medium Term Dow

In the medium term, we are out of the market as none of our triggers were hit. We will watch 10,570 down, and 10,625 up, with 20 point stops for tomorrow.

NASDAQ & S&P

The NASDAQ and S&P also traded sideways today, ending the day on a positive note. They are continuing to trade within wide ranges at the lows as well. Watch for a break at the boundaries tomorrow. *

Summary

The Dow traded sideways to up today. It ended the day at the upper boundary of its sloping channel. We expect the index to continue to trade within its range tomorrow before a strong directional break occurs.

Thanks for listening, and Good luck in your trading..

Ed Downs
edowns@nirvsys.com

with assistance from..
Bela Patel, Market Analyst bpatel@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