July 5, 2007 Market Recap

The DJIA is right in the middle of the consolidation phase. Until it goes above that high, I will be watching it to see which way the trend will proceed. The stochs are showing that it is going to short term overbought. Next week may see it go lower after the slow trading this week.


The S&P looks similar. The bulls brought the market back to even today. The bears thought they were winning earlier, but the bulls came back. The stochs are up in the overbought zone as well.


The Nasdaq is the interesting one. It has reached a new high the past few days. The trendline was redrawn to the low the end of June. Higher highs and Higher lows are seen. When the Nasdaq is trending better than the Dow the overall market will be up. This makes me think that we should be going higher here on all of them. It appears that there should be a short term reversal, since it would be getting close to the top of the channel.

If the Russell 2000 breaks above the 850 mark, then it could go on up. I am anticipating that the Russell 2000 could get pinned for the month around 850. It is hitting a lot of resistance there from the middle of June and now hitting it again. I am trying to learn Iron Condor Options trading as well, so I am hoping I am right.


Overall the markets are in a consolidation phase. It could drop a little bit more before the end of year gains.