Updated Tuesday, 9/23 for Wednesday's market.
Key DOW Levels for 9/24
UP None
DN None
Choppy Decline..
Dow trends lower throughout session, drops sharply into the Close.
From prior commentary, "...Since the Dow dropped so sharply throughout the day, we could see it consolidate at lows beneath 11,200 before the next key move is seen. Look for more overall weakness ahead, especially should the index remain beneath 11,300..."
The Dow opened the day quietly this morning, as the index basically consolidated throughout the morning beneath 11,200 before getting a bearish break below 11,000, as seen in the 5 and 15 Minute Charts. The Dow rallied early in the afternoon, but eventually sold off heavily into the Close, causing a loss of 162 points on the day.
The Dow has now pulled back sharply from the 11,500 level after rallying to this zone late last week. This decline has sent the index back to the 10,840 level, which is precisely the 62% Fibonacci Retracement level, as measured from last week's lows to last week's highs, seen in the 15 Minute Chart.
As we mentioned before, the Dow was likely to remain bearish beneath the 11,500 level and could reach prior support at 10,460. Watch 10,800 for signs of further weakness ahead. Otherwise, near-term strength could be seen above 11,100.
Short Term Dow
The Dow closed the day above near-term support at 10,840, seen in the 5 Minute Chart. Watch this level closely for early direction at the Open.
Medium Term Dow
In the medium term, we are still out of the market and will remain on the sideline until better entry points arise.
NASDAQ & S&P
The NASDAQ and S&P each sold off quietly throughout the day, then bounced from lows only to drop again. Each index remains highly bearish and should continue to look weak beneath current resistance.
Summary
The Dow ended the day with another triple-digit loss and is holding just above the 10,800 level. Watch this zone for early direction tomorrow.
Thanks for listening, and Good luck in your trading!
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