Updated Monday, 9/8 for Tuesday's market.
Key DOW Levels for 9/9
UP None
DN Below 11,300..
Late-Day Bounce..
Dow rallies at Open, but drops from highs before late-day rally.
From prior commentary, "...the Dow should continue to be considered bearish so long as it remains beneath 11,800...Look for the index to potentially build out between 11,000 and 11,400 before another big move occurs..."
The Dow opened the day with a big burst of strength this morning, but topped out at 11,570 before dropping back to the 11,300 level, as seen in the 15 Minute Chart. The Dow did recover from lows, however, and proceeded to rally back to the 11,500 level to end the day with a gain of 290 points.
As we mentioned before, the Dow has held firmly beneath the 11,800 level since dropped steadily last week. This recent burst of strength could spark move range-type movement between 11,000 and 11,800 until a major breakout from this range occurs. Watch for more near-term strength above 11,300, unless this level is crossed.
Short Term Dow
The Dow closed the day with a nice rally after forming a bullish saucer pattern, as seen in the 5 Minute Chart. Watch 11,550 for early signs of a break or bounce tomorrow morning.
Medium Term Dow
In the medium term, we covered Shorts at 11,300 today, giving us a gain of 90 points for the trade. We are out of the market and will watch 11,300 for Shorts, while holding off on Longs at this time.
NASDAQ & S&P
The NASDAQ and S&P each pulled back from early highs today, but pushed nicely higher into the Close. Look for more near-term strength above today's intraday support levels.
Summary
The Dow ended the day with a nice rally into the Close and closed the day with big gains. If the Dow remains above 11,300, we could see another test of the key 11,700 level soon.
Thanks for listening, and Good luck in your trading!
Ed Downs
edowns@nirvsys.com
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