DOW: 625 Point Range Today (5 yr high)

The DOW wins the prize this year for most volatile day. I went back on the 5 year chart and the second largest intraday range I could find was Feb 28th, 2007 with a 524 point range.

The more important aspect of today's move was how strong it closed. The price action created another bottoming tail which is short term bullish.

The index is still trading under the downward channel trendline so although this move looks bullish on first glance we must remember that we are in an intermediate downtrend and that any rally has a high probability to be met with heavy selling at key resistance levels.

Those likely resistance levels based on horizontal price action are:

- 12,600 last
- 12,500 next
- 12,400 mid
- 12,350 closest

It will be very interesting to see if we can hold Wednesday's gains on Thursday. Keep your eyes on the prices and resistance levels.

If the DOW moves lower look for 11,970 and 11,660 to support as they have in the last 2 days of trading.

DOW Daily Chart: 625 Point Range on Wednesday