A Daily Swing Trade

- Dow breaks intraday consolidation to downside, sells off to the Close.
- NASDAQ and S&P each traded sideways throughout the session today, but ended on very bearish notes. Look for another continuation pattern to form ahead of the next key move.

Summary

The Dow broke a very tight triangle consolidation to the downside late in the day, which continues to push the index lower. If the index breaks through 11,100, much more weakness could be seen. However, watch for a possible bounce, as the index gathers its composure.

As an indicator of momentum, the Commodity Selection Index, or CSI is designed to help select commodities suitable for short-term trading. Designed for short-term traders who can handle the risks associated with highly volatile markets, a high CSI rating indicates that the commodity has strong trending and volatility characteristics. These characteristics are brought out by the Directional Movement factor in the calculation - the volatility characteristic by the Average True Range factor.

CSI creator Welles Wilder describes his focus to trading commodities with high CSI values. As these commodities are highly volatile, they have the potential to make the quickest return in the shortest time.

- Dow breaks triangle to downside, drops steadily to the Close.
- NASDAQ and S&P each broke their respective ranges to the downside today, but the tech-heavy index lagged the market in terms of the sell-off. Each index continues to push to new lows, but we may see another consolidation form ahead of the next move.

Summary

The Dow got a massive downside break from the large triangle consolidation at 11,400 today, which sent the index tumbling. After today's huge decline, we can expect the index to either hold at the lows or reverse in a reaction rally. Look for this tomorrow, as the index builds out for the next key move.

- Dow trades back and forth throughout session, holds within large sloping consolidation.
- NASDAQ and S&P each rallied late in the day to close the session with strength. Look for continued development of a potential continuation pattern tomorrow.

Summary

Today's late-day reaction rally pushed the index to the highs of the session. Look for the index to continue to build out at the lows of the overall decline as the next key move develops. A breakout from 11,330 and 11,460 should make for nice movement.each traded sideways-to-down today within the boundaries of their respective ranges. Look for continued range movement ahead of the next key move.

Summary

The Dow has begun to form the framework for a large continuation pattern after dropping steadily from last week's highs. The large consolidation is forming in the sharp of an upward-sloping triangle, which can be a very bearish pattern. Look for continued range development of this pattern before the next big breakout is seen.

- Dow holds above 11,300, gets sharp upside reversal to the Close.
- NASDAQ and S&P each rallied late in the day to close the session with strength. Look for continued development of a potential continuation pattern tomorrow.

Summary

Today's late-day reaction rally pushed the index to the highs of the session. Look for the index to continue to build out at the lows of the overall decline as the next key move develops. A breakout from 11,330 and 11,460 should make for nice movement.

- Dow violates key support at 11,425.
- NASDAQ and S&P continue to capitulate in the face of recent weakness. Both indexes closed near session lows and in close proximity to potential support levels. Considering the severity of this week's losses, we are likely to witness a period of retracement and/or consolidation.

Summary

Today's definitive break below 11,425 provided a clear indication of weakness and may foreshadow a test of the upward sloping trend line near 11,200. However, in the near term, we are likely to endure a brief period of consolidation and/or retracement as the index digests the recent decline.