The Weekly Report for May 19th - May 23rd, 2008

May 18, 2008- Market Summary
The bulls made another attempt to push the indexes above the resistance of their respective 200-day moving averages. As you can see from the charts below, Friday's narrow price action created a hanging-man pattern on several of the charts, which is significant because it is suggesting that buying pressure is declining and that the direction of the asset may be getting ready to head lower. It should be noted that the reliability of this pattern is drastically improved when the price of the asset decreases the day after the signal.

In our last reports, we also noted that many traders were curious to see if the nearby moving averages would act as a level of resistance. The recent candlestick patterns are confirming the strength of the moving averages and it is suggesting that the broad markets are getting exhausted. We expect that the record high oil prices will continue to add to the downside pressure and we'll watch for the indexes to struggle while trying to make a move higher.

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