Updated Monday, 10/13 for Tuesday's market. Key DOW Levels for 10/14 UP None DN None
Huge move up Dow gains more than 900 points on light volume.
From prior commentary, "...this triangle's forecasted target of 8,400 has now been reached. Watch for this level to serve as a fulcrum, and the next big move away from this level will likely follow through ..." The Dow started the day with a 300+ point jump this morning, breaking away from the 8,400 level mentioned in previous commentaries. Bullish sentiment continued throughout the day, as the index continued continued to march upward. In the last hour of trading the gains accelerated, sending the Dow soaring, as seen in the 15 and 60 Minute Charts. Overall the index finished up over 900 points for the largest one day point gain in history.
The Daily and Weekly Charts shows the Dow sharply reversing after last week's huge losses. While the point gain today was significant, volume was fairly low due to the holiday. Additionally the volume on Friday was far below what would be expected for a capitulation bottom. With this in mind, watch for some near term strength in the next few sessions, before we return to the downside to shake out the last of the bulls. In the longer term the battleground is still around the 8,400 level, though in near term we could see bullish moves toward the 10,000.
Short Term Dow
The Dow closed the day up after making steady gains throughout the session. Watch for an upside bias again tommorow, but watch your positions carefully as market conditions can change in an instant.
Medium Term Dow
In the medium term, we are out of the market and will hold off on new trades at this time.
NASDAQ & S&P
The NASDAQ and S&P followed suit today, moving virtually in unison with the Dow. At the end of the day, all three indexes were up more than 11%. from Friday's close.
Summary
The Dow had a huge day today, moving up more than 900 points. While this move may set off a near term bounce, watch the fulcrum around 8,400 for insight into the next big move.
Thanks for listening, and Good luck in your trading!
Ed Downs edowns@nirvsys.com
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