Stefan; can't seem to get anything on the Downes site (2 days) so thought I would post this which comes in the e-mail. My bold picking out the Nasdaq.
Updated Wednesday, 3/22 for Thursday's Market
Key DOW
Levels for 3/23
UP Current Trend
DN
10,750
Consolidation Day
Could retrace, but should
remain above 10,750 if the market is to remain
healthy.
"I would watch for a continued rally. We
will, of course, see retracements. For tomorrow, I would
tolerate any retracement on the Dow that keeps us above
10,750." - Tuesday, March 21
Today, we had basically
flat trading on the Dow, pulling back some 40 points to
close slightly lower. I am keeping with my previous
number today - if we pull back through 10,750 you have to
look at why that is happening, and consider exiting
Longs.
The Expanding Triangle in the Weekly Chart has
me a "little" worried, but my "best guess" is we will see
another traversal of the triangle to about 12,000 (see
projection line in the Weekly Chart).
Based on the
consolidation measurement (the parallel lines in the 60
Minute Chart), I believe that we should see a continued
upside move to 11,500 on the Dow and 850 on the OEX.
Keep your eyes open. We have an expanding triangle in
the Weekly Chart, which is an unstable (and typically
bearish) pattern. As I say, I would only be worried
about this if we pull back through 10,750.
To make a
comment on the NASDAQ **, we have pulled back to rest just
between the 62% and 50% retracement points, and I think we
are more vulnerable there. I am expecting a pullback
tomorrow on the NASDAQ, probably to something like 4,800,
and then a new push up. A drop below this level should be
taken somewhat seriously. The NASDAQ is in a trading
range, and in my opinion, is likely to remain there for
some time to come.
Thanks for listening, and Good Luck
in Your Trading.
Ed
Downs
edowns@nirvsys.com
p.s. Thanks, Clint, for pointing out Ed Downes (among other things)!
Dorothy |
