The Weekly Report for June 30th - July 4th, 2008

June 29, 2008- Market Summary
In our previous report, we mentioned that the bulls were unable to prevent the upward rally from losing its mometum and that the breakdown triggered on many of the charts was likely to be used as a sign that the short-term direction would remain downward.

We noted that a head-and-shoulders pattern formed on the chart of the Russell and that a move below the neckline would be used by traders to signal a move toward the 690 level. As you can see from the chart below, the short-term target was nearly reached last week and now many traders may readjust their targets to equal the April low. Longer-term bears likely will watch for a move back toward the March low, which is shown on the chart as the horizontal trendline near 645.

The other story of the week was undoubtedly the soaring energy prices, which many are expecting will continue to fuel the downside pressure and will prevent bulls from reversing the downtrend over the short run.

Join me (CaseyMurphy) in Investopedia's FREE stock picking community. Check out what other traders are watching and post your own takes on where you think your favorite stocks are headed. Click here to learn more!

Have a Great Day! Casey Murphy Senior Analyst, ChartAdvisor.com DISCLAIMER ChartAdvisor is not a registered Investment Adviser or a Broker/Dealer. The trading of securities may not be suitable for all potential users of the Service. You should be aware of the risks inherent in the stock market. Past performance does not guarantee or imply future success. You cannot assume that profits or gains will be realized. The purchase of securities discussed by the Service may result in the loss of some or all of any investment made. We recommend that you consult a stockbroker or financial advisor before buying or selling securities, or making any investment decisions. You assume the entire cost and risk of any investing and/or trading you choose to undertake.