Dow Jones: Charttechnik fuer Montag den 17.05.04

Still Consolidating

Dow trades sideways in range, gearing up for a break.

The Dow traded quite wildly today, as the index oscillated within the boundaries of a wide consolidation, seen at the highs of the 15 Minute Chart. The index is clearly gearing up for another solid move. Watch the consolidation boundaries for a break Monday.

The 15 Minute Chart shows the range spans from 9,930 to 10,075. An upside break through the top is the most likely scenario and will likely spark a solid move toward 10,300. A downside break, on the other hand, will likely make for weakness back toward support at 9,850. Watch 9,930 for a break to indicate that such a move is likely.

Short Term Dow

Short term, the Dow ended the day within the boundaries of a tight range, seen at the lows of the 1 Minute Chart. Watch the range for a break for direction at the Open; 10,025 up, and 10,000 down.

Medium Term Dow

In the medium term, we entered the market Short this morning at 9,950, but stopped out with a 20 point loss. We are now out of the market and will watch 10,075 up, and 9,930 down; using 20 point stops.

NASDAQ & S&P

The S&P and NASDAQ each mirrored the Dow today, in that each traded wildly within their respective ranges. Look for further range movement before a clear break occurs. *

Summary

The Dow continues to hold within a clear consolidation, formed at the highs of the recent advance. An upside break is implied Monday, which will likely spark a solid gain. Watch 10,075 up, and 9,930 down Monday.

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