Signal Watch Index Update
NASDAQ & OEX
The NASDAQ consolidated at lows, similar to the Dow, and we
are watching the lower boundary of this consolidation
carefully for signs of a further break. Odds are good that
this will happen. The OEX has an upward-sloping
consolidation, similar to the Dow, with a very tight range
at the apex. Whenever you have tightening ranges, you
typically have strong moves follow, so we will be watching
the action there very carefully at Monday's Open. *
SUMMARY
Clearly, today was a "sideways" day, with very little
action. This is often the calm before the storm. When you
have low volatility after a move, an even bigger move
typically follows. Since we consolidated at the lows of
the prior range, we will be watching for, and expecting, a
downside break. In that light, we will be monitoring 9,585
for new Shorts. If the Dow rallies through 9,625 we will
enter new Longs instead. Stops will be held at the entry
points in either case.
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