Updated 3/24 for Thursday's market. | |||||||||||||||||
Still ConsolidatingDow continues sideways within clear consolidation boundaries.From prior commentary, "...The Dow traded sideways within the boundaries of a clear consolidation. The index appears to be gearing up for a powerful move; watch this range for a break for direction..." The Dow continued sideways within the clear consolidation boundaries today, further developing the range from 10,000 to 10,130, seen in the 15 and 60 Minute Charts. The fact that the index continues to consolidate shows the indecision in the current market. However, once a break from the consolidation occurs, rest assured that a solid move is very likely to result. A downside break from the range at 10,000, which is also a highly psychological line in the charts, will likely open the gates to a much steeper decline in the medium term. Conversely, an upside break from the range at 10,130 will lead to a move toward recent highs at around 10,325. Look for continued sideways movement within the range until a clear and solid break occurs. Short Term Dow Short term, the Dow is holding above support at 10,000, seen in the 5 and 15 Minute Charts. Look for short term strength above this level, unless support is crossed tomorrow morning. Medium Term Dow In the medium term, we entered the market Short today at 10,044, but stopped out at the entry due to the Breakeven Rule. No other trades were triggered and we are now out of the market. Watch 10,000 down, and 10,140 tomorrow, with 20 point stops. NASDAQ & S&P The NASDAQ and S&P each pushed sideways within their respective ranges today, further solidifying the consolidations. Look for continues sideways movement until a solid break occurs. * Summary The Dow oscillated within the consolidation boundaries today, sharpening the edges of the range from 10,000 to 10,130. The index is clearly gearing up for a solid breakout. Watch for a break from the range to indicate that such a move is likely. Thanks for listening, and Good luck in your trading.. Ed Downs with assistance from.. ** 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 _________________________ |
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