June 3, 2007

The Weekly Report for June 4th - June 8th, 2007

1) MARKET SUMMARY
2) INDEX CHARTS (DJIA, S&P, NASDAQ and RUSSELL)

Market Summary
Traders managed to shrug off the bearish candlestick patterns that we mentioned in our last report and, as you can see from the charts below, the Dow and S&P continued their trek to new record highs. The impressive gains seen across all indexes continued to dominate the headlines and traders are continuing to wonder how much longer the rally can continue. As we noted in our last report, it is dangerous to trade against the trend, which was clearly illustrated by recent price action, but we still believe that it is a good time for investors to be cautious of a pullback toward the major support levels.

The chart of the S&P 500 is very interesting this week because it is trading near the highs made in early 2000. Technical traders will keep a close eye on the 1550 level because it may be the level that will prevent the rally from heading higher.

Index Charts

Dow Jones Industrial Average

S&P 500


Nasdaq 100

Russell 2000 Index

Have a Great Week!

Editor, ChartAdvisor.com

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