Dow NR7 day

Today was narrow range day (61pts, not so bad but quite low comparatively).

Caught up in a couple of false break outs, momentum break outs did not work well on this kind of day.

The shortsale part of the day came very late.

Monday is BUY day in TTT but.......

Because of today's weak closing, we can expect a low made first on Monday (around 10985, today's low).

The daily chart points to a technical resistance at 11040, the downside is at least 100 pts.

Besides, NR7 day may be followed by a trending day.

If the decline does not go below 10985, look to go Long on momentum strength, otherwise to go short.

So.. decided to keep the short trade open for Monday. Stop order at 11044. This is very important number in daily chart.

We are "Strictly System Trading" but this daily chart is for guidance.

There are two reasons for a steep decline:-

1. Touching the upper channel line of downward trend
2. Head and shouder neck line re-test and decline

For further upward rally:-

1. Large volume picking up on the bounce

Let's see...