A Daily Swing Trade

- Dow penetrates the above upper boundary of the narrowing consolidation pattern.
- The S&P and NASDAQ both maintained a strong bullish uptrend throughout today’s session. In the process, both indexes have broken outside boundaries of recent consolidation and appear to have established a bullish bias in the near term.

Summary

For Thursday’s session, we will focus on 11,220 and 11,300 for an early indication of directional bias. However, considering the magnitude of today's advances, we may see a period of consolidation as the index prepares for its next decisive advance or decline.

- Dow opens session strongly, but fails to retain bullish momentum.
- Despite today's volatility, the NASDAQ and S&P each managed to achieve solid gains. Like the Dow, it appears that both the S&P and NASDAQ are establishing short-term consolidation patterns. We will monitor these boundaries in anticipation of a trend defining break.

Summary

For Thursday’s session, we will remain vigilant to intraday activity near the boundaries of the narrowing consolidation pattern seen in the 15 and 60 minute charts. A definitive break above or below the noted boundaries will likely provided early indication for a medium term directional bias.

- Dow sells off at Open, continues lower to the Close.
- NASDAQ and S&P each each sold off heavily from start to finish today. The indexes are now headed back toward key support levels that have held throughout the overall decline. A break or bounce of these levels could be huge for direction.

Summary

The Dow closed the day sharply lower from Friday's close, as the index lost a hefty 184 points. The index is headed back toward a test of the major 11,025 zone, which could be the break that leads to the next huge medium term decline. Watch this zone closely.

The Projection Oscillator is a by-product of Dr. Mel Widner's Projection Bands. In essense a slope-adjusted Stochastic, the Projection Oscillator shows the relationship of the current price to its minimum and maximum prices over time. Unlike the Stochastic Oscillator, here the minimum and maximum prices are adjusted up or down by the slope of the price's regression line. It is this adjustment that makes the Projection Oscillator so responsive to short-term price moves.

Three common ways to interpret the Projection Oscillator:

· Overbought/oversold
· Crossovers
· Divergences

- Dow opens with strength, extends gains above 11,200.
- NASDAQ and S&P each pushed slowly higher today and continue to look bullish in the near term. Continue to watch resistance to signs of an upside continuation.

Summary

The Dow closed the day near the highs of the session after breaking firmly through key resistance at 11,200. The index has reached the key 38% Retracement zone where we could see another pattern develop. Look for continued strength above 11,200 next week. If the index can continue holding above this level, we could see much more strength.