Market Monday's

I hope that everybody had a good and safe Fourth of July. We now return with a full week a trading and a market that isn't looking that hot.



On the weekly view, notice the following:

-- The SPYs formed a double top in mid-2007. Since then they have dropped

-- Prices are below the 200 week SMA

-- Prices are below all the SMAs

-- All the SMAs are heading lower

-- If price move through 124 in a convincing way, the next support level is at 117



On the daily chart, notice the following:

-- Prices are below all the SMAs

-- All the SMAs are headed lower

-- The shorter SMAs are below the longer SMAs



The P and F chart shows the precariousness of the current price situation. Notice the importance of 124 as a support level.