▶ TTT-Team: Mittwoch, 31.01.2007

Still Holding..

Dow continues sideways movement, holds above 12,500.

The Dow traded slowly sideways throughout much of the session today and continues to wind up within a large triangle pattern that could offer a solid breakout move soon, as seen in the 15 and 60 Minute Charts. The Dow closed the day with a 33 point gain, but continues to hold beneath the major 12,600 resistance level.

The 15 and 60 Minute Charts show the Dow continues to build out beneath the 12,550 level after getting a major sell-off from the 12,600 zone last week. If the Dow cannot rise above 12,550, we could see a big wave of weakness through 12,475 en route to the next support level of 12,335. Otherwise, an upside push through 12,550 will likely set the stage for another key test of resistance at 12,600.

Short Term Dow

The Dow closed the day beneath key near-term resistance at 12,540, seen in the 5 Minute Chart. Watch this zone for early direction tomorrow morning.

Medium Term Dow

In the medium term, we are still out of the market and will watch 12,550 up, and 12,450 down; using 20 point stops.

NASDAQ & S&P

The NASDAQ and S&P each continue to hold within their respective consolidation ranges, which continue to build out. Look for an eventual breakout from these ranges for key direction.

Summary

The Dow closed the day very quietly, as the index continues to build out within a pattern that is clearly winding up. Look for the index to get a breakout from this pattern en route to the next medium term move.

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