The
Weekly Report for April 14th - April 18th, 2008
April 13, 2008- Market Summary
In our last report,
we mentioned that the recent rally was welcomed by the bulls, but
we also noted that the nearby resistance
prevented us from determining whether the upward momentum would
be able to continue. As you can see from the charts below, the major
indexes did indeed face their respective resistance levels, which
we noted last week, and they retreated lower just like many bears
were anticipating. The chart of specific interest is of the Dow
because it failed to move above the horizontal trendline. The 12,700
resistance level, beyond which the Dow has not been able to move
since the downtrend started, continues to be a significant threat
to any short-term moves higher. The other chart that we find particularly
interesting is of the Russell, which bounced off the resistance
of its 50-day moving
average. This failed move higher will likely be used by many
bearish traders to predict a continued pullback in the broader markets.
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