Dow Jones: Chart-Update

Upmove

The Dow opened the session quietly higher this morning, but followed through to the upside for a 56 point gain by the end of the day, as seen in the 15 and 60 Minute Charts.

The index continues to hold above the key 10,300 level, seen in the Daily and 60 Minute Charts. As we mentioned before, the index will be considered bullish above this level. Look for the index to continue trading in volatile fashion within the wide trading range boundaries, which have formed from 10,300 to 10,500.

An upside break through a clear upper trend line at 10,430 will indicate movement toward resistance at 10,500 tomorrow, while a downside break through 10,390 will likely spark weakness.

Short Term Dow

Short term, the Dow ended the day within the boundaries of a very tight range from 10,400 to 10,430, seen in the 5 Minute Chart. Watch for a break from this range for short term direction at the Open.

Medium Term Dow

In the medium term, we covered Shorts this morning at the entry for a breakeven trade. We will watch 10,440 up, and 10,390 down tomorrow; using 20 point stops.

NASDAQ & S&P

The NASDAQ and S&P each traded higher today, with the tech-heavy index leading the way. The NASDAQ continues to hold within a clear trading range, while the S&P has formed a clear upper trend line across the highs. Watch these key patterns tomorrow. *

Summary

The Dow ended the day higher after trending up throughout the day. The index has now formed a tight consolidation at the highs just below a clear upper trend line. An upside break through 10,430 will likely lead to a move toward resistance at 10,500 tomorrow, while a downside break through 10,390 will indicate weakness toward support at 10,300.

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