f-h Oni BW sb & Friends-TTT, Montach 02.08.04

Still Consolidating

Dow continues sideways, holds within consolidation boundaries.

The Dow traded sideways throughout the session today, holding within the clear consolidation boundaries formed at the highs of the recent upmove from 10,080 to 10,160, seen in the 15 and 60 Minute Charts.

The Dow continues to hold at the upper boundary of the clear, downtrending channel at around 10,125. This is the area where the consolidation has formed, which is a key line in the charts. Look for the index to continue holding within the consolidation boundaries before another key move occurs.

An upside break from the pattern at 10,165 is the most likely scenario and will likely mark the beginning of a solid uptrend. Otherwise, a downside break from the range at 10,075 will make for another ride lower within the channel boundaries.

Short Term Dow

Short term, the Dow continues to hold between 10,080 and 10,160, seen in the 5 Minute Chart. Look for much of the same until a break occurs.

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 10,175 up, and 10,075 down Monday; using 20 point stops.

NASDAQ & S&P

The NASDAQ trended higher today, while the S&P held firmly within its consolidation range. The fact that the NASDAQ has broken the channel to the upside and the S&P has formed the consolidation at the highs is bullish. *

Summary

The Dow ended the day slightly higher, but held firmly within the boundaries of the tight consolidation that has formed at the highs of the recent upmove. An upside break is the most likely scenario, but a break either way should provide solid movement. Watch the range boundaries Monday.

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