Updated Monday, 4/2 for Tuesday's market.
Key DOW Levels for 4/3
UP Above 12,400
DN Below 12,225
Winding Up..
Dow trades sideways within larger range, continues to wind ahead of potential move.
From prior commentary, "...The index is clearly winding up within a potentially powerful range that could offer big breakout movement next week..."
The Dow traded quietly throughout the session today, but continues to hold beneath the key 10,400 level, which has been a clear fulcrum in the charts over the last week of trading, as seen in the 15 Minute Chart. The index closed the day near the session's highs for 28 points, but continues to wind up for a much bigger move ahead.
The 15 and 60 Minute Charts show the Dow remains within the boundaries of the clear six-day trading range that spans from 12,250 to 12,425. A breakout from this range could spark some serious movement in the direction of the break. Adding to this is the fact that the Daily Chart is winding up toward the apex of a huge triangle pattern that could easily spark the next major directional move - a move that could be somewhere in the 500 to 800 point ballpark.
Watch 12,425 and 12,250 for key direction. Further range movement is likely within this range.
Short Term Dow
The Dow closed the day beneath intraday resistance at 12,395, as seen in the 5 Minute Chart. Watch this zone for early direction tomorrow morning.
Medium Term Dow
In the medium term, we are still out of the market and will watch 12,425 up, and 12,250 down; using 20 point stops.
NASDAQ & S&P
The NASDAQ and S&P pushed slowly higher late in the day, but continue to build out within clear ranges. Watch for more range movement until a solid breakout occurs.
Summary
The Dow closed the day near the highs of the session after pushing slowly higher from the day's lows. The index continues to wind up within the clear consolidation range, which could spark big movement upon a break.
Thanks for listening, and Good luck in your trading!
Ed Downs
edowns@nirvsys.com
with assistance from..
Frank Ochoa, Sr. 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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[Harry: Given that we are pretty close to the end of the traditional rally session that we experience at the beginning of the year and head into the period that anticipates the summer dulrum, there is a good possibility the move will be down as opposed to up.] |
