New Highs..
Dow resumes slow uptrend, reaches to new all-time highs.
From prior commentary, "...The index continues to push toward the key consolidation target of 12,365, which could be hit tomorrow, but look for signs of a potential pull-back from current highs, as the index could be over-extended in the near term..." The Dow opened the day lower this morning, but used the rest of the session to climb slowly higher to the Close to end the day with a 36 point gain, as seen in the 15 Minute Chart. The index has now come within 30 points of hitting the 12,365 consolidation target, which could be hit just prior to a potential pull-back in this index.
The 60 Minute Chart shows the Dow has raced out of the major triangle after breaking it earlier in the week. However, the index hasn't really pulled back at all during this advance, which could indicate that a potential retracement is on the horizon. However, as long as the index continues to hold firmly above 12,200, further strength should be seen.
Keep an eye on 12,275 Monday, as a downside push through this zone could lead to early weakness.
Short Term Dow
The Dow closed the day above the 12,300 level, which is a clear near-term fulcrum in the 5 Minute Chart. Watch this line closely for early direction Monday morning.
Medium Term Dow
In the medium term, we are still Long the Dow from 12,168 and currently have 169 points in the trade. We will hold stops at 12,250 for Monday's market and will want to stay Long above 12,350. We will hold off on Shorts, unless 12,250 is violated; using 20 point stops.
NASDAQ & S&P
The NASDAQ and S&P each continue to hold near the overall highs, building consolidations in the process. Watch these ranges for key movement early next week.
Summary
The Dow closed the day with another new record high and continues to tack on points within the current uptrend. The Dow should remain quite bullish above 12,200, but we could see a near-term retracement before another explosive breakout is seen.
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
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