Dow, Daily Signal for today

Sideways Day

Dow drops, trades sideways to the Close.

Sideways Day

Dow drops, trades sideways to the Close.

The Dow opened the session higher this morning, but like the past couple of sessions, immediately turned down and moved sharply lower for much of the morning, as seen in the 15 Minute Chart. After the steep morning drop, the Dow went on consolidate at the lows just above the lower trend line of the major channel, seen in the Daily and 60 Minute Charts.

The 15 Minute Chart shows that the index has trended lower the past several sessions within the boundaries of a tight channel. Typically, this behavior indicates that an upside break is looming. An upside break through the top of the tight channel at 9,100 will likely send the Dow back up toward the top of the wide trading range at around the 9,250 area.

A break through the top of the trading range at 9,250 will likely spark another solid move higher within the wide channel, seen in the Daily Chart. Conversely, a downside break from the range at 9,025 will likely lead to a sharp descent. Watch for further trading range activity until one of these levels is violated.

Short Term Dow

Short term, the Dow has formed a tight consolidation at the lows of the 5 Minute Chart from 9,050 to 9,100. Watch for a break from this range to indicate direction for tomorrow's Open.

Medium Term Dow

In the medium term, we are still out of the market, as none of our levels were triggered. We will continue to watch 9,025 down, and will also watch 9,250 up, with 10 point stops.

NASDAQ & S&P

The NASDAQ got another Pop and Drop today, while the S&P did likewise. Each index trended lower and then sideways, forming tight consolidations at the lows. Watch for further movement within their respective wide trading ranges. *

Summary

The Dow pushed lower after another seemingly strong Open today, as the index ended the day within the boundaries of a tight consolidation near the lows of the session. An upside break through 9,100 will likely send the index higher toward the top of the range, but significant movement will not occur until either 9,250 or 9,025 is broken.

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

Volatile Session

Dow trades sideways-to-down within volatile range.

The Dow basically traded strictly between 9,025 and 9,100 today, as the index moved slowly lower within a tight range throughout the session, seen in the 15 Minute Chart.

Looking at the 60 Minute Chart, you see that the index continues to trend lower within the tight channel that has formed over the course of the last four sessions. Also, and VERY importantly, the index has finally reached the lower trend line of the wide upward channel that has continued to develop since early March.

The Dow is now at a crossroads and is likely to decide which way it will move in the next session. A downside break of the very solid lower trend line at 9,000 should unleash a significant sell-off in the index, while an upside break through 9,100 will likely push the Dow back up within the wide trading range that has formed in the Daily Chart. This is our expectation, based on the position of the lower channel boundary. Watch the 9,000 level carefully tomorrow.

Short Term Dow

Short term, the Dow has formed a clear short term resistance level at 9,063, seen in the 1 Minute Chart. The index ended the day just beneath this level, which we will watch closely for tomorrow's Open.

Medium Term Dow

In the medium term, we triggered Shorts late in the session at 9,025 today, but the position was stopped out on a volatile reversal. We are now out of the market and will watch 9,100 up, and 9,000 down; applying 10 point stops to any new positions.

NASDAQ & S&P

The NASDAQ sold off heavily today, as the index pushed lower toward the bottom of the wide channel. The S&P also sold off rather sharply today, which each index ending the day near the lows of the session. Watch the lower boundary of their respective channels tomorrow. *

Summary

The Dow lost 43 points on the session, as the index trended lower within a volatile range today. But the significant news is where it now rests - just above the vital lower trend line in the Daily Chart. This is a critical fulcrum. Watch 9,000 down, and 9,100 up.

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