Dow Jones: Seitwärts Session

Sideways

Dow holds at highs, reaches upper boundary of bullish channel.

The Dow traded higher early in the session reaching 10,321, as the index basically reached the upper boundary of both the wide channel from the Daily Chart and the upper boundary of the current bullish uptrending channel, seen in the 60 Minute Chart.

The index held at the highs throughout the session, ending the day lower by 30 points, but may be in for another pull-back within the current uptrend. The fact that the index has reached the upper boundary of the sloping channel at around 10,325 implies a likely pull-back within the channel toward 10,175, seen in the 60 Minute Chart. A downside break from the intraday consolidation at 10,250 will indicate that such a move is likely.

We are very likely to continue trending higher within this channel in the medium term, especially if the index holds above the clear lower trend line at 10,175. An upside push through 10,300 will make for continued strength.

Short Term Dow

Short term, the Dow is holding above a clear short term support level at 10,260, seen in the 5 Minute Chart. Watch for strength above this level, unless a downside break occurs here.

Medium Term Dow

In the medium term, we are still Long the Dow from 10,215 and will continue to hold stops at 10,250 for Tuesday's market. We will want to stay Long above 10,330 and will look for Shorts below 10,250; using 20 point stops.

NASDAQ & S&P

The NASDAQ pulled back sharply today, while the S&P held firmly at the highs of the recent advance. Each index continues to trend higher, but a break a key lower levels could indicate a retracement Tuesday. *

Summary

The Dow ended the day within the boundaries of a tight consolidation. The index is holding near the highs of a bullish channel, but may make a move lower toward the lower channel boundary Tuesday, especially if 10,250 is crossed to the downside. Watch 10,250 down, and 10,330 up Tuesday.

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