Welcome to our free Dow Market Commentary page. Since 1998, Ed Downs has been helping investors understand where the market is likely to move in the short and medium term. If you are new to the site, be sure to take our guided tour for an overview of what SignalWatch has to offer.
Updated 8/14 for Friday's market.
Key DOW Levels for 8/15
UP Above 9,375
DN Below 9,200
Holding
Dow continues to hold at highs beneath major resistance.
From prior commentary, "...the Dow continues to trend higher above a clear trend line that has formed beneath the lows of the last six sessions...further upside movement toward the key 9,360 resistance level is expected if the Dow can continue to hold above the lower trend line..."
The Dow tested the lower trend line early in the session, but reversed up right of it to eventually gain 39 points on the session, seen in the 15 Minute Chart. The index continues to hold at the two-day highs and came within 25 points of hitting the major 9,360 resistance level, seen in the Daily Chart.
Looking at the Daily Chart shows that the Dow is right at the top of the wide trading range that has formed from 9,000 to 9,360. A downside break of 9,250 will likely push the index back down toward the lower boundary of the range, while an upside break through 9,360 will spark a solid upside continuation. Watch this range tomorrow.
Short Term Dow
Short term, the Dow has formed a potentially bullish intraday consolidation at the highs of the 15 Minute Chart. An upside break from the range is expected at 9,315, should would push the index higher. Conversely, a downside break at 9,275 will signal weakness.
Medium Term Dow
We are still out of the market in the medium term, as none of our entry levels were triggered. We are will watch 9,200 down, and 9,375 up tomorrow, with 10 point stops.
NASDAQ & S&P
The NASDAQ and S&P traded slightly higher on the session today, with the S&P forming a tight consolidation at the highs. Watch the lower trend lines that have formed beneath each index. *
Summary
The Dow climbed higher off the lower trend line today, gaining 39 points on the session. The index continues to hold at the highs of the prior move, beneath the major 9,360 resistance level. We will watch this level carefully tomorrow for either a break or bounce. Watch 9,200 down, and 9,375 up.
Thanks for listening, and Good luck in your trading..
Ed Downs
edowns@nirvsys.com
with assistance from..
Frank Ochoa, Market Analyst
fochoa@nirvsys.com
** Note: We are now posting Index entries and exits in Real Time, through our new Intraday Index Alerts service. To learn more about the service, visit SignalWatch.com and select Intraday Alerts from the main navigation bar. - SW Team
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