June 17, 2007

The Weekly Report for June 18th - June 22nd, 2007

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

Market Summary
In our previous report, we mentioned that the major indexes were approaching the support of their respective 50-day moving averages and that many traders would likely pay close attention to these averages to see if they could stop the pullback from continuing. As you can see from the charts below, the bulls did prevent the momentum from shifting and Friday's tamer-than-expected core inflation data played a key role in sending the indexes back within striking distance of the record highs.

The upward diverging moving averages are a clear technical sign that the uptrend is still intact. Specifically, we believe that the 50-day moving average will continue to be the key level that will be used to predict whether the trend is shifting. The chart of the S&P is of particular interest this week because the index bounced off its 50-day moving average, and it looks like the bulls have their sights set on record highs once again.

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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