At Resistance
Dow rallies off lower channel boundary, ends day at resistance.
From prior commentary, "...The Dow moved higher at the Open, but was turned away by the stern 9,275 resistance level. The index sold off thereafter, ending the day near the lower boundary of the major range, which we will watch closely tomorrow..." The Dow turned up right off the clear lower channel boundary this morning and rallied sharply higher the rest of the session, racking up 172 points for the day.
The index ended the day right at the solid 9,280 resistance level, seen in the 60 Minute Chart, which will be our main focus Monday. The Dow has turned down precisely off this resistance level twice in the past two weeks, so we will want to keep a close eye on the activity around it for Monday's trading.
The Dow continues to trade in volatile fashion within the trading range boundaries, seen plainly in the 60 Minute Chart. Most of the movement has been contained within the 9,000 to 9,280 levels. Should resistance hold up again on Monday, look for another push down toward the lower region of the range. A downside break at 9,100 will be significant.
Short Term Dow
The Dow has formed a tight range from 9,250 to 9,280, seen in the 1 Minute Chart. A break from this range will likely spark short term direction.
Medium Term Dow
In the medium term, we are still out of the market, as none of our entry levels were triggered today. We will watch 9,300 up, and 9,250 down Monday, with 10 point stops.
NASDAQ & S&P
The NASDAQ and S&P each got sharp v-bottom reversals today, as each index moved sharply off the lows en route to a sharp upmove. Each index is now approaching resistance areas, which we will watch Monday. *
Summary
The Dow weak this morning, but reversed sharply off the lows and rallied throughout the remainder of the session. The index is now right at a key resistance level at 9,280, which will be our main focus tomorrow.
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
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