The
Weekly Report for October 15th - October 19th, 2007
October 14, 2007- Market Summary
The technology sector helped lead the markets higher last week,
but the bulls are not out of the woods yet. It would not be a surprise
to see traders shift their focus based on how the upcoming earnings
annoucements will affect the rally's momentum. As you can see from
the charts below, the Dow and S&P continued their move to all-time
highs, and are moving farther away from the support of their respective
long-term moving averages. We've added the Relative
Strength Index to the bottom of several charts because the indicator
is nearing overbought
levels (70+). This relatively high RSI value and extension from
key support levels suggests that the upcoming earnings must be positive
if the bulls would like to remain in control of the short-term momentum.
An earnings miss from any of the large players could be enough scare
investors into taking profit off the table and cause the markets
to move lower.
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