The Weekly Report for June 25th - June 29th, 2007

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

Market Summary
Wednesday's report of rising bond yields sparked concern about the future direction of the markets, causing the Dow to fall 146 points, or 1.1%. The weakness in the markets brought many traders' attention back to the support of the 50-day moving average, reaffirming the belief that this support level must hold if traders would like to see the uptrend continue. Luckily for the bulls, the markets rebounded nicely, but the heightened volatility created because of Wednesday's drop is making some traders wonder how much longer the uptrend can continue for.

Two specific charts of interest this week are of the Dow and the S&P. The bulls were unable to send the indexes back toward the resistance of their respective May highs, but indecision candles printed near the barriers is suggesting that the bulls are apprehensive about future moves higher. These two indexes are currently trading between the resistance of the May highs and the support of the 50-day moving averages and it will be difficult to predict the future short-term direction until the price breaks beyond one of these levels.