Continued Strength..
Dow continues steady advance, pushes to another record high.
From prior commentary, "...the Dow continues to hold firmly above the key 12,200 resistance level, which is very indicative of further upside movement...we should see the Dow push higher toward the triangle's target of 12,365, which would complete the 200 point target..." The Dow opened the day with another pop at the Open and pushed slowly, but steadily higher the remainder of the session, as seen in the 15 Minute Chart. The index peaked at 12,325 and eventually closed the day with a solid 54 point gain, but looks poised to hit the triangle's target of 12,365 soon.
The 60 Minute Chart shows the Dow has really put some distance between the breakout of the triangle and the current highs. Given this overall strength, we could see the Dow eventually build out a consolidation at the highs before another big move is seen. That is, the Dow has traveled quite a way in a short period of time and could be over-extended in the near term. As long as the Dow remains above key resistance at 12,200, however, further strength should be seen.
Short Term Dow
The Dow closed the day above the day's intraday fulcrum of 12,290, seen in the 5 Minute Chart. Watch this zone for movement tomorrow morning.
Medium Term Dow
In the medium term, we are still Long the Dow from 12,168 and currently have 137 points in the trade. We will hold stops at 12,240 for tomorrow's market and will want to stay Long above 12,350. We will hold off on Shorts, unless 12,125 is violated; using 20 point stops.
NASDAQ & S&P
The NASDAQ and S&P each traded sideways-to-up today, as clear patterns are beginning to arrive. Watch near-term support tomorrow.
Summary
The Dow ended the day near the highs of the session after trending slowly higher throughout the day. The index continues to push toward the key consolidation target of 12,365, which could be hit tomorrow, but look for signs of a potential pull-back from current highs, as the index could be over-extended in the near term.
Thanks for listening, and Good luck in your trading!
Ed Downs
edowns@nirvsys.com
with assistance from..
Frank Ochoa, Sr. 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
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