f-h Oni BW sb & Friends-TTT, Donnerstach 15.07.0

Volatile Session

Dow gets steep rally followed by an even steeper decline, ends session within bearish range.

The Dow got a downside break from the tight consolidation this morning, which fueled a sharp decline in the opening minutes of trading, seen in the 15 Minute Chart. However, the index formed a v-bottom and rallied through the top of the consolidation, before turning back down for another 100 point drop, capping off a highly volatile session.

The 15 and 60 Minute Charts show the Dow continues to trade sideways within the boundaries of a wide trading range from 10,160 to 10,290. Look for further sideways movement within the range boundaries until a solid break occurs. A downside break from the range is the most likely scenario and would likely spark a move lower toward 10,000. However, a break either way should fuel a solid move.

Short Term Dow

Short term, the Dow ended the day below a clear short term resistance level at 10,220, seen in the 1 Minute Chart. Watch for weakness below this level, unless an upside break occurs tomorrow morning.

Medium Term Dow

In the medium term, we entered the market Long today at 10,275, but stopped out of the trade. We later entered Shorts at 10,189, but the trade also faltered. We are out of the market and will watch 10,150 down, and 10,300 up; using 20 point stops.

NASDAQ & S&P

The NASDAQ and S&P each completed round trip moves today, which each filling the gap before falling to the Close. Look for continued weakness within the channel for the NASDAQ and for further range movement for the S&P. *

Summary

The Dow ended the day lower after such a volatile session today and continues to hold within a bearish trading range. Typically, increased volatility indicates future weakness, so we could be in for a steep drop in the near future. Watch 10,150 down, and 10,300 up.

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