The Weekly Report for May 26th - May 30th, 2008

May 25, 2008- Market Summary
In our previous report, we mentioned that the narrowing price action created a hanging-man pattern on the charts of several indexes. The short-term reversal pattern is used to suggest that buying pressure is declining and that the direction of the asset may be getting ready to head lower. As you can see from the charts below, the candlestick pattern coincided with a bounce off the 200-day moving average, which confirmed that the broad markets were getting exhausted. We continue to expect record high oil prices 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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