UP Above 11,725
DN Below 11,300
Steady Decline..
Dow reverses from yesterday's highs, drops throughout session.
From prior commentary, "...Look for the index to build out a potential continuation pattern above 11,600...Keep an eye on 11,650, however, as a downside break through this zone could lead to a near-term retracement..."
The Dow opened the day with early weakness through the 11,650 level this morning and proceeded to drop throughout the session, as seen in the 15 and 60 Minute Charts. The index closed the day at the session's lows with a loss of 171 points and could be headed back toward the 11,400 level.
The Dow has essentially been rejected at the 11,700 level for the second time in three weeks, which does not bode well for the index. If this level cannot be crossed, we could see another drop back toward the 11,400 level. Continue to watch for range-type movement between 11,300 and 11,700 until a breakout from this range is seen.
Short Term Dow
The Dow closed the day at the session's lows at 11,545, seen in the 5 Minute Chart. Watch this level for early direction Tuesday morning.
Medium Term Dow
In the medium term, we closed out Longs in the Dow at 11,600 today with a breakeven trade and are now out of the market. We will hold off on trades, unless 11,725 or 11,300 is crossed; using 25 point stops.
NASDAQ & S&P
The NASDAQ and S&P each dropped sharply throughout the session, as the tech-heavy index led the way lower right from the Open. Look for the index to continue to show weakness beneath newfound resistance.
Summary
The Dow closed the day with big losses a day after a big rally. The index will likely continue to trade between 11,300 and 11,700 until a solid breakout occurs.
Thanks for listening, and Good luck in your trading!
Ed Downs
edowns@nirvsys.com
|
Thread abonnieren
