imported post
I like that green on the chart.... to much red for to long....
We need a good follow though with volume ..... still looks like we
could drop more as this is a reaction to the drops we had...
dow 10550 looks like the point we want to break...
I have traded with Ed Downs for years and he is cautious about this.
What I like is his no emotions on trading . Trades with the market and not against it..
you can get his daily update on the dow free at..
http://www.signalwatch.com/markets/markets-dow.asp
here is todays report...
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From prior commentary, "...This type of rally is typical after such an extensive period of selling. Typically, a reaction rally does not last long. That is, we will likely see another steep decline, especially if 10,400 is crossed to the downside..." [/font]
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The Dow extended yesterday's reaction rally into a two-day advance today, as the index continues to pull-back after the recent overall decline. The Dow pulled back precisely to the 62% Retracement zone from the January 19th high to the January 24th lows, as seen in the 15 Minute Chart. [/font]
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Markets tend to reverse at key Fibonacci retracement areas; therefore, we may see another big decline lower in the near term. As long as the Dow stays below 10,550, another drop is very likely. The 15 Minute Chart shows the Dow has formed a clear lower trend line beneath the two-day rise. A downside break of the line at 10,480 will send the index into another tailspin. Watch this level tomorrow. [/font]
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Short Term Dow [/font]
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Short term, the Dow has formed a tight range at the highs of the 5 Minute Chart from 10,490 to 10,520. Watch for a break from this range for direction at the Open tomorrow. [/font]
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Medium Term Dow [/font]
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In the medium term, we entered the market Long today at 10,525, but stopped out with a loss. No other trades were entered, and we are now out of the market. Watch 10,550 up, and 10,480 down tomorrow; using 20 point stops. [/font]
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NASDAQ & S&P [/font]
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The S&P and NASDAQ each trended higher today, gaining ground after the recent slide. However, each index continues to leave itself vulnerable to another decline. [/font]
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Summary [/font]
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The Dow continues to inch higher, as the index digests the recent decline. Another decline seems to be looming, so keep an eye on 10,480 tomorrow. A break here will signal further weakness, unless the Dow breaks above 10,550. [/font]
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Thanks for listening, and Good luck in your trading! [/font]
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Ed Downs
edowns@nirvsys.com [/font]
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with assistance from..
Frank Ochoa, Market Analyst
fochoa@nirvsys.com [/font]
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** 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 [/font]