▶ TTT-Team: Faschingsdienstag, 20.02.2007

Still Holding..

Dow continues holding at highs, stays within tight consolidation.

The Dow traded slowly sideways throughout the session today and continues to hold at the overall highs above the key 12,700 resistance level, as seen in the 15 and 60 Minute Charts. The index closed the day with a very mild 3 point gain, but continues to look positioned for more strength ahead.

The 60 Minute Chart shows the Dow continues to hold confidently above the 12,700 zone and hasn't had much of an adverse reaction after rallying to new highs, which is promising of more strength. If the Dow can continue to hold above 12,700, further strength is very likely, especially if 12,800 is taken out.

Keep an eye on 12,725, as a break below this level could spark a test of 12,700. Such a test could result in a moderate retracement.

Short Term Dow

The Dow closed the day above intraday support at 12,740, seen in the 5 Minute Chart. Watch this zone for early direction Tuesday morning.

Medium Term Dow

In the medium term, we are still Long the Dow from 12,700 and currently hold a 68 point gain in the trade. We will hold stops at 12,720 for Tuesday's market and will want to stay Long above 12,800. We will hold off on Shorts, unless 12,720 is violated; using 20 point stops.

NASDAQ & S&P

The NASDAQ and S&P each continue to hold within their respective consolidation ranges, which we'll continue to watch for a breakout move. Currently, these ranges point to more upside movement.

Summary

The Dow ended the day with a mild advance to close the session barely higher. The index continues to hold above major resistance, which is promising of more strength. Watch 12,720 and 12,800 for a near-term breakout move Tuesday.

Thanks for listening, and Good luck in your trading!

Ed Downs
edowns@nirvsys.com

with assistance from..
Frank Ochoa, Sr. 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