| Updated 9/25 for Friday's market. |  | ||||||||||||||||
Lower HighDow shows continued weakness, continuation pattern formed.From prior commentary, "...The break of the lower line at 9,500 indicates weakness and implies a further decline is likely in the medium term...If a lower high or consolidation forms, that would indicate further weakness..." The Dow sold off early in the session today, then "bounced" before making another push lower to the Close, which in turn formed a lower high (as seen in the 15 Minute Chart). The Dow ended the session lower by 81 points, but the formation of the lower high, seen in the 60 Minute Chart, implies that more downside is very likely. Looking at the 60 Minute Chart shows that the lower high has formed beneath the key trend line that was broken during yesterday's trading at 9,500. The formation of a continuation pattern beneath the break point of the trend line indicates that further weakness is likely in the medium term. Look for a push down toward the next support level at 9,235. The Dow has formed a clear trend line across the highs of the recent two-day descent, seen in the 15 Minute Chart. An upside break of the line at 9,425 will likely spark a move higher in the interim before another major push lower is seen. Short Term Dow Short term, the Dow has formed a clear trend line across the highs of the 5 Minute Chart. An upside break through the line at 9,420 will indicate strength at the Open. Medium Term Dow In the medium term, we are still Short the Dow from 9,510 and will move our stops down to 9,470 for tomorrow's market. Look for Longs above 9,475, with 10 point stops. NASDAQ & S&P The NASDAQ and S&P each mirrored the Dow today, as the indices ultimately ended the day lower. Lower highs in each index implies further weakness. * Summary The Dow pushed sideways within a wide range today, but finally broke the day's lows, essentially forming a lower high. This implies further weakness in the medium term. Watch for push down toward the next support level at 9,235. 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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MfG, ZiZo 
