Dow Jones: 400 Punkte seit Tief

Still Holding

Dow stays at highs, holds beneath key resistance.

The Dow closed the session higher by 22 points today, but continues to hold just beneath the key 10,200 resistance level, seen in the 15 and 60 Minute Charts.

The 10,200 level is a clear fulcrum in the charts, which we will need to pay attention to heading into next week's trading. There is a good chance that a move way from this level will be quite impressive, but further sideways movement may occur before such a move is seen.

The Dow is clearly gearing up for a move and has formed a clear range at the highs of the current upmove from 10,150 to 10,215, seen in the 15 Minute Chart. An upside break is the most likely case Monday, but a break either way should yield a solid move.

The 60 Minute Chart shows the Dow has formed a steep uptrend over the last two weeks of trading. A downside break of the lower trend line at 10,170 could spark a rather sizeable retracement.

Short Term Dow

Short term, the Dow has formed a tight range from 10,190 to 10,212, seen in the 5 Minute Chart. Watch for a break from this range for short term direction Monday morning.

Medium Term Dow

In the medium term, we are still Long the Dow from 10,150 and will continue to hold stops at the entry for Monday's market. We will want to stay Long above 10,215, and will enter Shorts below 10,150; using 20 point stops.

NASDAQ & S&P

The NASDAQ and S&P each pushed slowly higher throughout the session today, but continue to hold within a relatively tight range at the highs. Keep an eye on the range Monday. *

Summary

The Dow closed the session higher today, and is currently holding at the highs just beneath a clear resistance level at 10,200. Watch for a break or bounce of resistance Monday for movement, as such a move will likely result in solid activity. Watch 10,215 up, and 10,150 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