Summary for Week Ending 9th June 2007
An exciting week this past week with mostly bearish sentiment leading the pack. I admit that I didn't see this coming, but in the scheme of things we are yet to see any serious fractures in the market so far.
We have easily breeched the 30 point range so we know we are into something else. We are very close to the 56 point range and still a long way off from the 98 and 107 point ranges. A likely support would be the old high at around 1462 which is above the latter 2 ranges so any support coming in there would be bullish in the medium term.
The question everyone is asking is 'Is this the end?" This cannot be answered at this point since we haven't seen enough action to make a confident determination in either direction. We can only go with what we know and that is the market has yet to exceed a decline greater than 98 or 107 points and until we see that the trend is still in place. If the bears do get jittery then we can expect to see more of the same that we witnessed on Friday night with the market making a strong recovery after all the mess earlier in the week.
Looking ahead we have to see if Fridays rally will experience any follow through. A failure here would not be good and would see the support areas tested.
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