Dow Update

ChartMan

Legendary member
5,580 46
Today was a spot on day.The resistance points yesterday worked spot on today. A small drop on open then a quick dash to the 100MA line and a flip at 9243 turning resistance into support.Then a lot of dithering around 9250-60 , trading between 9240 and 9265 for ages,making everyone agiated!Then came the break. RSI quickly moved to 60 with CCI over 100 and we were off to test 9300. I think every one piled in here :) A quick pull back to 9250 ( now support) and off to fill the gap to 9375. That was a prompt try, and further moves tried to test 9400, but just never quite made it, HOD being 9392. I twitched at the last drop to 9360 and it cost me 15 points to get out and come back in, having closed about a minute too early :( Overall I managed +32 from 8 trips 6 win 2 lose).
Tricky call for tomorrow. There is no clear overall divergence.The 10 Min up trends are intact as are 15 min trends.However the 10 min RSI is levelling and CCI has a down trend line just about to break the up trend.I feel the uptrend is too steep, and expect to see a pull back to the arrowed "theoretical" trend line ,supported by my suggestion last week that the drop to 9100 was well overdone and therefore can be "ignored" for the purposes of establising the real trend here.
9330/9350 should now be strong support, with a reasonable target of 9450....If my "new trend line" turns out to be true, we can expect a retrace to as low as 9300 before moving on...maybe even kissing the 100MA.
 

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