Slow Advance..
Dow trades sideways throughout session, continues holding near highs.
From prior commentary, "...If the index can build out a potential continuation pattern above 12,200, further overall strength should be seen..." The Dow traded quietly sideways throughout the session today, but still managed to gain a solid 48 points for the day, as seen in the 15 and 60 Minute Charts. The index continues to hold near the overall highs just beneath 12,350, but looks a bit over-extended at this point.
The 60 Minute Chart shows the Dow continues to rise from the 12,100 low reached just two sessions back. If the Dow can continue holding above 12,250, we could see another solid rally attempt to new highs through 12,350. Given recent strength, we could see the Dow trade sideways at the highs ahead of the next key breakout move.
A downside push through 12,250 will indicate another potential decline within the large trading range that continues to develop from 12,100 to 12,365. However, only a solid break through 12,100 will spark heavy selling.
Short Term Dow
The Dow closed the day beneath key intraday resistance at 12,340, seen in the 5 Minute Chart. Watch this line closely for direction tomorrow morning.
Medium Term Dow
In the medium term, we entered the Dow Long at 12,325, but stopped out for a small loss. We are out of the market and will watch 11,375 up, and 12,075 down; using 20 point stops.
NASDAQ & S&P
The NASDAQ and S&P each traded quietly sideways throughout the session, forming clear consolidations in the process. Look for further development of these ranges before the next key move.
Summary
The Dow ended the day quietly, as the index basically traded sideways throughout the session. The index continues to hold near highs just beneath key resistance at 12,350, which we will continue to watch for key direction.
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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