August 17


Market Commentary for Aug 17, 2020


August 17, 2020

Bullish Formation


“We have basically the same situation as yesterday, with the market forming a very nice trend line at the consolidation highs, which was reinforced today.”  Friday was a continuation of the same (bullish) behavior, with a good triangle pattern intraday that should lead to an upside break if we can cross 28,000 with conviction over the next few sessions.


DJIA – 39 Minutes 

Again, since the market moved sideways to down along the line we drew yesterday, it is in the same stance going into Monday, with a stronger case for an upside move due to the formation  marked in the 39 Minute Chart.  However, we must watch for a break of 27,600 which would be short term bearish.


DJIA – Daily


Monday, we will be watching for breaks at 27,600 and 28,000 or for a continued pull-back to 27,600 and a bounce off that line.  These action levels should once again have set up well for Monday trading.


Index level marking is important because the market as a whole perceives support and resistance this way.  Looking at index charts, it’s uncanny how often a line will hold and form strong Support or Resistance.  It’s a phenomenon I have seen repeat itself over and over these past 30 years and it’s definitely worth paying attention to! 


Good luck in your trading.


Ed Downs 



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