Summary for Week Ending 16th June 2007
Much of the week has been spent within the previous weeks range. The lack of follow through beyond the 53-56 point range is telling and it sets everything up for an interesting week.
As mentioned last week, until we see a decline in excess of 107 points, the trend is still in place, no matter how many of these wiggles we come across. The week finished quite strongly and it offers some hope that the declines that we did see are just a blip on the horizon. The 90 day range for the movement proved to be nothing except being a few days off from the low, which is not what was expected anyway. If 90 day is to offer nothing then the next range of interest will be the 135 day range ( 90 + 45). Anything beyond that takes us to 180 days for the movement. The 180 is interesting in that it takes us to 10th Sept, 1 day off the anniversary.
Looking at this weeks chart we can see the parallel channel that's been running since March 2003. The upper lines cross the date lines in the low 1600's. That is of course if the market is to maintain its current rise/run ratio. If we are to see a blow off move then the upper trend line of the parallel channel cannot be expected to hold.
Overall we are only interested in the direction of the market, and so far all things still point to the upside.
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