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News Headlines:    U.S. Relief that the largest blackout in history did not cause more damage and disruption and a surge in the chip sector pushed the Dow to its highest level in nearly 14 months Celltech Group posted a forecast-beating rise in first-half earnings as it cut its sales force and drew a line under one of its biggest drug disappointments. They said earnings per share before goodwill and exceptional items jumped 78 percent to 6.4 pence above expectations from 4.5p to 5.7p. Turnover rose eight percent to 158.1 million pounds, broadly in line with expectations. Intec Telecom Systems the British telecom software services provider, said its core profit surged by 225 percent in the first nine months of its fiscal year, despite unfavourable currency effects. Calendar All GMT United Kingdom (F)inals (I)nterim United States (Click Flag) Europe & World Tue 19th       Brixton (I), Celtech (I), Singer & Friedlander (I) 00.30 July RICS House Price Survey Hewlett Packard (Q3), Home Depot (Q2) 13.30 July Housing Starts 1790k exp. 19.00 July Monthly Budget Statement -$53.0bn exp. 14.50 Aug Preliminary Michigan Sentiment 91.5 exp. 07.00 July German Producer Prices m/m flat exp. 10.00 August July German ZEW Index 46.9 exp. 11.00 July CPI y/y 11.00 June Industrial Production m/m 0.2% exp. Good Trading!   David@FTSEDOW.com    www.FTSEDOW.com            Pivot Calculator

Updated 8/18 for Tuesday's market.
Key DOW Levels for 8/19
UP Current Trend
DN Below 9,375

Through Resistance
Dow breaks through major resistance, forms rectangle.

From prior commentary, "...The index will likely continue trending higher until it reaches the major 9,360 resistance level. A break through this level will initiate a major rally..."
The Dow pushed higher at the Open and finally got a break through the key 9,360 resistance level, seen in the Daily and 60 Minute Charts. The upside break sparked a moderate rally, but further upside potential is very likely, especially if the Dow can hold above resistance tomorrow.

The break through resistance also marked the upside break from the large consolidation from the Daily Chart. The break implies further upside movement in the medium term. But first, the Dow must hold above resistance. A dip back below resistance could force another push back into the wide trading range.

Short Term Dow

Short term, the Dow has formed a very nice rectangle consolidation at the highs of the 5 Minute Chart from 9,400 to 9,420. An upside break is the most likely scenario tomorrow morning and is very likely to extend today's upmove. However, rectangles create equally powerful retracements. Watch both boundaries at the Open. If you are day trading, whichever side breaks is the side you want to play near the Open.

Medium Term Dow

In the medium term, we entered the market Long this morning at 9,375, and are still in the position. We will hold stops at 9,395 tomorrow. Stay Long above 9,420, and watch 9,375 for Shorts.

NASDAQ & S&P

The NASDAQ and S&P each rallied this morning and continue to hold at the highs of the session. The NASDAQ is right at the upper boundary of the wide, sloping range, and the S&P is approaching its upper boundary. These are key levels to watch tomorrow. *

Summary

The Dow got the break through resistance today, which triggered a nice upmove today. The fact that the index is consolidating at the highs and is now above resistance leaves the door open for a major upmove in the medium term.

Morning all,
Late this morning due to an ISP problem in France.

Morning All,

Thought you were back already croc - it's starting to cool down a little here, is it still pretty hot were you are?

Looking to profit take still, expect to sell more today.

Morning all.

Just been following the thread and looking at the charts above about Celltech.
I've got some shares in that company and they've dropped over 45 today on theri interim results - which I thought were quite good results.
Do you wise people advise me to Hold or Sell.
All too often I have sold only to see the share price rise over the next few days to well above what I paid eg. Spirent! Bought those within the last few weeks ahead of their interims. They went down on the day - I paniced, sold them and now they have risen over 12% in two days!!!!

Banks seem to be in freefall! (Except Lloyds which is the weakest!)

I thought August was going to be a quiet month! A lot of trading going on today!

wed ftse pp

r2 4301.9
r1 4276.3
pp 4261.3
s1 4235.7
s2 4220.7

Close was below tue s1 level! DJ above its pp at our close!