Dow Jones: Vorerst Ausbruch im Daily...

Upside Break

Dow breaks range to upside, trends higher to the Close.

The Dow ended the day higher after getting a slow, but steady upside break from the consolidation at 10,165, seen in the 15 and 60 Minute Charts. The index gained 40 points for the session, but is still vulnerable to a reversal.

Look for the index to continue holding above 10,150 tomorrow. Also, if the index can break, and hold, above 10,200, we could see the beginning of a new, sustained uptrend in the medium term. Otherwise, a break below 10,150 could spark another push lower, especially if 10,125 is broken.

The 10,125 level represents the clear lower trend line that has formed beneath the lows of the current uptrend, seen in the 15 Minute Chart. A break here could make for another steep decline.

Short Term Dow

Short term, the Dow ended the day holding above 10,150, seen in the 5 Minute Chart. Look for strength above this level tomorrow morning, unless a downside break occurs.

Medium Term Dow

In the medium term, we entered the market Long today at 10,175, but stopped out with a loss. We are out of the market and will watch 10,200 up, and 10,125 down; using 20 point stops.

NASDAQ & S&P

The NASDAQ trends higher, but holds within consolidation range; while the S&P gets key upside break. Each index looks to indicate strength at this time, but watch key lower boundaries for any indication of weakness. *

Summary

The Dow got the upside break from the consolidation today, as the index gained 40 points for the session. The index continues to push slowly higher after getting the upside break from the major downtrending channel. However, a break below 10,125 could make for another key downmove. Look for strength above this level tomorrow.

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