Rebound from Lows..

Dow rallies after yesterday's late-day decline, pushes back to 13,000.

The Dow opened the day with early strength this morning and got progressively stronger throughout the session, as the index closed the day near the session's highs, as seen in the 15 Minute Chart. The index bounced nicely after yesterday's late-day sell-off and tested 13,000 just before the Close, ending the day with a gain of 94 points.

The Daily and 60 Minute Charts show the Dow continues to push higher off the major lower trend line, which has paced the index higher since March. If the Dow can get a solid break through 13,000, we could see another big wave of strength within the overall uptrend. Continue to watch the 12,800 fulcrum for signs of a greater retracement, however, as the current advance is not quite convincing as of yet.

Short Term Dow

The Dow closed the day back at the clear 13,000 level, seen in the 5 Minute Chart. Watch this level closely for early direction tomorrow.

Medium Term Dow

In the medium term, we are still out of the market and will watch 13,025 up, and 12,700 down; using 25 point stops.

NASDAQ & S&P

The NASDAQ and S&P continue to push higher despite yesterday's late-day pull-back. Look for continued strength above resistance.

Summary

The Dow closed the day near the highs of the session after getting a solid bounce from the 12,850 level. The index will test 13,000 once again, as this level is the glass ceiling that is currently holding the index down.

Thanks for listening, and Good luck in your trading!

Ed Downs
edowns@nirvsys.com

with assistance from..
Frank Ochoa, Sr. Market Analyst
fochoa@nirvsys.com

** 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