f-h Oni BW sb & Friends-TTT, Mittwoch 21.07.04

At Upper Trend Line

Dow trades higher to upper trend line. Watch for a break or bounce.

The Dow dropped this morning to the trend line formed across the highs yesterday seen in the 15 Minute Chart at 10,070. It reversed off this level, and traded higher throughout the session to the upper trend line formed across the highs seen in the 15 and 60 Minute Charts, gaining over 40 points for the day.

Looking at the 15 Minute Chart, you can see the index has closed just below the upper trend line at 10,150. An upside break through this level will indicate further strength in the medium term to resistance at 10,280.

However, a downside push off the upper trend line could lead to a move to 10,060, and result in a range formation at the lows between 10,060 and 10,160. A downside break through 10,060 will likely fuel a move lower within the sloping channel seen in the Daily Chart.

Short Term Dow

Short term, the Dow has formed a trend line across the lows seen in the 5 Minute Chart at 10,110. Watch for continued strength above this level, unless a downside break occurs.

Medium Term Dow

In the medium term, we closed our Short position at 10,150 for a breakeven trade. We are now out of the market and will watch 10,100 down, and 10,160 up; using 20 point stops.

NASDAQ & S&P

The NASDAQ and S&P each traded higher throughout the session today. They too have formed a trend line across the lows for the day. We expect continued strength unless an downside break occurs. *

Summary

The Dow reversed off the trend line formed yesterday, and trended higher throughout the session. It ended the day at the upper trend line seen in the 60 Minute Chart at 10,150. Watch this level tomorrow for a break or bounce to indicate direction in the medium term.

Thanks for listening, and Good luck in your trading!

Ed Downs
edowns@nirvsys.com

with assistance from..
Bela Patel, Market Analyst
bpatel@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