Still Holding..
Dow continues holding within clear consolidation range, holds at resistance.
From prior commentary, "...The Dow closed the day well off the session's lows after bouncing off key near-term support at 12,250. Look for continued range movement within the consolidation range until a solid breakout is seen..." The Dow opened the session in strong fashion this morning, but was immediately met with heavy selling off major resistance at 10,360, which sent the index into steady decline the rest of the day, as seen in the 15 Minute Chart. The index eventually closed the day with a mild 2 point gain, but continues to wind up for the much bigger breakout move.
The 60 Minute Chart shows the Dow continues to trade between the boundaries of the large consolidation that spans from 12,250 to 12,370. This consolidation also looks like the right shoulder of a large inverted head-and-shoulders pattern, which is a highly bullish pattern. Continue to watch the boundaries of this range for the next big breakout move. Watch 10,375 up, and 12,250 down.
Short Term Dow
The Dow closed the day above near-term support at 12,300, which we will continue to watch early tomorrow morning.
Medium Term Dow
In the medium term, we are still out of the market and will watch 12,375 up, and 12,250 down; using 20 point stops.
NASDAQ & S&P
The NASDAQ and S&P each began the day strong, but immediately pulled back from highs. Look for a more solid breakout with follow-through tomorrow.
Summary
The Dow continues to wind up within the large consolidation pattern, which we will continue to watch closely. Look for more range movement until this pattern is solidly broken.
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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