A Daily Swing Trade

- Dow rallies within consolidation range, continues to build out ahead of breakout.

- The S&P and NASDAQ each had mixed reactions compared to the Dow today, as the NADSAQ closed flat, while the S&P took a small gain. Each continues to hold within their respective consolidations, which we will continue to watch closely.

Summary

The Dow closed the day with a solid gain today, but continues to hold within the boundaries of the large consolidation range, which we will continue to watch tomorrow. A breakout through 11,260 or 11,100 could spark a nice medium term move. However, look for continued range movement before such a breakout is seen.

The CCT Bollinger Band Oscillator, also sometimes referred to as the CCT Bollinger Band Oscillator, reconfigures John Bollinger's classic Bollinger Bands (envelopes plotted at two Standard Deviations above and below a moving average) by drawing two parallel lines replacing the erratic envelopes.

The parallel lines represent a measurement of two Standard Deviations from the mean and are assigned a value of zero and 100 on the chart. The indicator represents the price as it travels above and below the mean (50%) and outside the two standard deviations (zero and 100). Penetration of the upper band represents overbought conditions while penetration of the lower band signifies oversold conditions.

Usage of the CCT Bollinger Band Oscillator to identify "failure swings" and "divergences" can lead to significant reversals...

- Dow pulls back from highs, holds at lows.

- The S&P and NASDAQ each sold off steadily to begin the day and look poised to pull back even further. The S&P is holding above near-term support and the NASDAQ is consolidating at lows, watch these patterns closely.

Summary

The Dow closed the day lower after beginning the session with a swift decline. The index is holding within the boundaries of a clear consolidation, which will clearly give us out next medium term move.

- Dow trends steadily higher in shortened session.

- The S&P and NASDAQ each pushed higher today, closing the day at the session's highs. Each index continues to look strong within the current uptrend, but will likely need a larger continuation pattern for bigger strength.

Summary

The Dow ended the day at the highs of the day, but is holding within the boundaries of a very tight consolidation. Watch this range closely, as a breakout will determine the next key move.

Developed by Tushar Chande, the Intraday Momentum Index is a combination of the Relative Strength Index and Candlestick Analysis.

The IMI is calculated like the RSI but uses the relationship between the intraday opening and closing prices to determine whether the day is up or down. When the close is above the open, it is an up day. If the close is below the open it is a down day. White candlesticks signify an up day, black candlesticks used for down days.

As with the RSI, overbought conditions (and lower prices ahead) are indicated when the index rises above 70. Values below 30 indicate a potential oversold situation and higher price ahead. Remember, as with all overbought/oversold indicators, you should first quantify the trendiness of the market before acting on any signals...

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- Dow pulls back slightly, holds majority of yesterday's gains.

- The S&P and NASDAQ each held gains after yesterday's blowout session. Look for continued sideways movement to occur in the near-term, as the indexes gear up for more strength.

Summary

The Dow closed quietly lower and is currently holding at the highs of the latest advance of the last several days. The index look s very strong right now, but needs to get a solid break above 11,300 is continued bullish momentum is to be seen.