Sunday, June 10, 2007

A New Week -- Let's See Where the Markets Are

OK -- last week all of the averages lost ground. Let's see where we stand.

Here's a chart of the SPYs. They bounced off the 50-day moving average, which is pretty good from a technical perspective. My guess is buy-programs went into effect on Friday.

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The Dow (DIA) is between the 20 and 50 day SMA. It did close right above resistance established near the end of May. This is a precipitous place for the Dow to be -- there is little room for error.

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The NASDAQ moved back into a consolidation area and is trading near the top of that area at $47. It's in a stronger technical position than the DOW but in a weaker position than the SPYs.

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This week there are two things to watch out for. The first is interest rates. Keep a close eye on the 10-year Treasury's yield. In addition, we have three inflation reports this week -- import prices, PPI and CPI. Considering the markets actually listened to the Fed's inflation warnings last week, these numbers are now really important.