The overall market as measured by the Dow Jones Industrial Average gained 54.40 points or approximately 0.0075% last week to finish at 7,278.38 The Dow Jones Industrial Average has moved towards upper end of it trading range, coming close to our stated resistance level of 7,552.29 before suffering losses on Thursday and Friday. As the chart below shows the trading channels that developed in May of last year are still influencing the market. My technical indicators are giving signals that the recent market rally may have run out of steam and the market may be heading back lower. Of particular note is the high volume on Thursday and Friday, especially Friday which saw just under the early October levels. While the Dow moved sharply higher today, it should be noted that the trading volume was light, and volume on the last 4 out of 5 trading days has been higher than it was today. I have concerns that this rally may be running out of steam and may head back lower. Additionally as you will notice the Dow Jones Industrial Average has reached the upper portion of its trading range as defined by the two downward trendlines. Whether the Dow Jones Industrial Average can finally break free of the influence of these trendlines remains to be seen, as you will notice earlier this year it did successfully break above the trendline only to return to moving within the trading channel.

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Dow Jones Industrial Average (INDU)

Current Opinion: Closed @ 7,775.86 Last Signal: Called higher with the close of 6,930.40 on March 11th, 2009. Current Expectations: With the activity of Monday March 23rd, the Dow closed above resistance at 7,552.29 and 7,762.34. It should continue to move higher and test resistance at 8,175.77 on a closing basis. Please note my indicators are giving me signals that this index may be over extended and due for a pullback,

The S&P 500

Current Opinion: Closed @ 822.92 Last Signal: Called higher with the close of 721.36 on March 11th, 2009. Current Expectations: With the activity on Monday March 23rd, the S&P 500 moved through resistance at 805.22 and 817.35. I am expecting the S&P 500 to continue to move higher and 851.19 on a closing basis. Please note my indicators are giving me signals that this index may be over extended and due for a pullback,

The NASDAQ 100 (NDX)

Current Opinion: Closed @ 1,259.81 Last Signal: Called higher with the close of 1,125.95 on March 11th, 2009 Current Expectations: The NDX should continue to move higher and test 1,281.65 on a closing basis.

CBOE Ten Year Treasury Index (TNX)

Current Opinion: Closed @ 2.656% Current Expectations: The TNX should move higher and test 3.340% on a closing basis. Please note that the longer term trading range of this index indicates that the current yield on the 10 year bond is abnormally low and it would be prudent to expect that the yield on the 10 year bonds should return to more normalized levels of 4.5% plus.