haj600
عضو نشط
- التسجيل
- 17 نوفمبر 2002
- المشاركات
- 212
Dow trades sideways, ends session below 8,800 resistance.
From prior commentary, "...Looking at the 60 Minute Chart, you see that today's rally formed the beginning of a higher low above 8,590. This pattern typically implies an upward continuation, but the Dow must break through resistance at 8,800...This level offers POWERFUL resistance..."
The Dow traded in volatile moves today, breaking above 8,800 briefly. However, it was not able to hold above this key resistance level, slowing any chance of a solid advance. However, the index continues to hold at the highs just beneath 8,800, which gives us a nice decision point for Monday's market (see 15 and 60 Minute Charts.)
We will continue to watch the 8,800 level for an upside break, as this level is the only clear resistance level between 8,800 and 9,000. Conversely, a downside break of the lower trend line, which has formed beneath the lows of the two-day advance (15 Minute Chart), at 8,750 will likely trigger a move lower. Watch this tight range for Monday's market.
Short Term Dow
Short term, the Dow has formed a clear bearish pennant in the 1 Minute Chart. A downside break of the pennant is implied for Monday's Open. Watch 8,775 down for the break.
Medium Term Dow
In the medium term, the market opened the session with a steep decline, which took us out of our Longs below our stop level. We closed the position at 8,700, taking a 22 point gain in the trade. We later entered the market Long at 8,800, but took a 10 point stop. We are now out of the market and will use 8,800 up, and 8,750 down as action levels, with 10 point stops and honoring the 30 Minute Rule.
NASDAQ & OEX (SP 100)
The NASDAQ and OEX also traded in a wild range today, but each remains near the session highs. Watch resistance on the OEX, and the triangle that has formed in the NASDAQ. *
Summary
The Dow moved in volatile fashion today, but held beneath resistance for much of the session. The 8,800 level appears significant and will be key for any further advance, while a downside break of 8,750 will likely spark a retracement within the range at the highs. Watch these levels for Monday's market
From prior commentary, "...Looking at the 60 Minute Chart, you see that today's rally formed the beginning of a higher low above 8,590. This pattern typically implies an upward continuation, but the Dow must break through resistance at 8,800...This level offers POWERFUL resistance..."
The Dow traded in volatile moves today, breaking above 8,800 briefly. However, it was not able to hold above this key resistance level, slowing any chance of a solid advance. However, the index continues to hold at the highs just beneath 8,800, which gives us a nice decision point for Monday's market (see 15 and 60 Minute Charts.)
We will continue to watch the 8,800 level for an upside break, as this level is the only clear resistance level between 8,800 and 9,000. Conversely, a downside break of the lower trend line, which has formed beneath the lows of the two-day advance (15 Minute Chart), at 8,750 will likely trigger a move lower. Watch this tight range for Monday's market.
Short Term Dow
Short term, the Dow has formed a clear bearish pennant in the 1 Minute Chart. A downside break of the pennant is implied for Monday's Open. Watch 8,775 down for the break.
Medium Term Dow
In the medium term, the market opened the session with a steep decline, which took us out of our Longs below our stop level. We closed the position at 8,700, taking a 22 point gain in the trade. We later entered the market Long at 8,800, but took a 10 point stop. We are now out of the market and will use 8,800 up, and 8,750 down as action levels, with 10 point stops and honoring the 30 Minute Rule.
NASDAQ & OEX (SP 100)
The NASDAQ and OEX also traded in a wild range today, but each remains near the session highs. Watch resistance on the OEX, and the triangle that has formed in the NASDAQ. *
Summary
The Dow moved in volatile fashion today, but held beneath resistance for much of the session. The 8,800 level appears significant and will be key for any further advance, while a downside break of 8,750 will likely spark a retracement within the range at the highs. Watch these levels for Monday's market