Holding..
Dow holds at highs, stays above 10,900.
From prior commentary, "...The index has basically sprinted from the 10,200 level without much of a rest, covering about 750 points in the process. While the longer term outlook is very strong for the Dow, look for the index to pull back toward the 10,825 level before new highs are seen..." As expected, the Dow traded fairly quietly throughout the abbreviated session Friday, as the index held within the boundaries of a tight trading range, seen in the 15 Minute chart. The Dow is holding at the highs of the recent advance and looks primed for new highs. However, a near-term pull-back may first be seen before such an advance occurs.
Look for continued range movement within the boundaries of 10,900 and 10,960 before the next move occurs. A breakout from this range will give us a nice near-term move. Keep an eye on the lower trend line from the 60 Minute Chart. A break of this line at 10,800 will likely make for a larger pull-back.
Short Term Dow
The Dow ended the day within the boundaries of 10,930 and 10,945, seen in the 1 Minute Chart. Watch for a breakout from this range for early movement at the Open.
Medium Term Dow
In the medium term, we are out of the market and will watch 10,900 down and 10,960 up; using 20 point stops.
NASDAQ & S&P
The NASDAQ and S&P each held at their respective highs. Look for continued range movement until a key breakout occurs.
Summary
The Dow closed the day at the highs of the recent advance, which is promising of another rise in the market. However, watch 10,900 for signs that a pull-back may occur within the advance.
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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