The DIA remains stuck in a range between (roughly) 122 and 121-120.80.  Whichever side of the range is violated should trigger a potent follow-through in the direction of the breakout -- to 123 on the upside and to 119.80/60 on the downside.  Letââ,¬â"¢s notice that a break to the downside beneath 120.80 also violates the very important August-October support line, a situation that will inflict meaningful damage to the near-term chart structure.  Right now, given todayââ,¬â"¢s action thus far, the bulls apparently will have an opportunity to defend the lower support band at 120.80.

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.