▶ TTT-Team: Donnerstag, 16.11.2006

Holding..

Dow advances slowly throughout session, maintains gains to the Close.

The Dow opened the day higher this morning and proceeded to push slowly and steadily up throughout the day, as seen in the 15 Minute Chart. The index eventually reached a high of 12,290 before getting a steady decline to the Close for an eventual 34 point gain, but more overall strength should be seen.

The 60 Minute Chart shows the Dow continues to hold firmly above the key 12,200 resistance level, which is very indicative of further upside movement. If the index can continue to hold above this zone, we should see the Dow push higher toward the triangle's target of 12,365, which would complete the 200 point target.

One thing to watch tomorrow is the formation of the potentially bearish head-and-shoulders pattern, seen at the highs of the 15 Minute Chart. This formation typically leads to selling, but given the overall strength of the index, selling from this pattern could be only short-lived. Watch 12,225 for a confirmed break from this pattern for weakness tomorrow.

Short Term Dow

The Dow closed the day above intraday support at 12,240, seen in the 5 Minute Chart. Watch this fulcrum for early direction tomorrow morning.

Medium Term Dow

In the medium term, we are still Long the Dow from 12,168 and currently have 85 points in the trade. We will hold stops at 11,200 for tomorrow's market and will want to stay Long above 12,300. We will hold off on Shorts, unless 12,100 is violated; using 20 point stops.

NASDAQ & S&P

The NASDAQ and S&P each pushed slowly higher throughout the session, but ended the day on a bearish note. Each should maintain overall strength above key support, however.

Summary

The Dow closed the day near the highs of the day, preserving the prior day's gains plus tacking on more profits in the process. The index continues to hold firmly above resistance at 12,200, which will continue to be a key fulcrum in the charts.

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