Dow Jones: Pull-Back und 60er Trendbruch

Pull-Back

Dow reverses off highs, ends session lower.

The Dow reversed off yesterday's highs this morning, sparking a slow, downward trend the entire session, seen in the 15 Minute Chart. The index got a downside break through the clear lower trend line at 10,150, which ultimately resulted in a 59 point loss for the session.

Looking at the 15 and 60 Minute Charts show that the index could be in for another key downmove, given the break of the clear lower trend line. A downside push through 10,100 will be an early indication of continued weakness tomorrow.

However, we could see a wide trading range form from 10,085 to 10,200. Further sideways movement could occur within this range before a break either way occurs. Watch these boundaries.

Short Term Dow

Short term, the Dow has formed a clear trend line across the highs of the day's decline, seen in the 5 Minute Chart. Look for continued weakness below this line, unless an upside break through 10,135 occurs.

Medium Term Dow

In the medium term, we entered the market Short today at 10,125, and are still in the trade. We will continue to hold 20 point stops for the trade, and will want to stay Short below 10,075. We will also look to enter Longs above 10,150; using 20 point stops.

NASDAQ & S&P

The NASDAQ and S&P each pulled back today, ending the session lower. The NASDAQ has gotten a key break from its range, which could forecast continued weakness. Watch a clear lower trend line for the S&P tomorrow. *

Summary

The Dow ended the session lower today after getting a sharp reversal off yesterday's highs. The index also got a downside break from the lower trend line at 10,150, which could make for further weakness, especially if 10,085 is crossed to the downside.

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