Weekly DJIA through 23-May-2005

The DJIA had a 70 point up week this week. Just looking at this chart, the market looks fairly positive--the price bar is green, the proprietary moving average is up and the indicators below the chart have both turned up.

Although the daily chart is very overbought, this longer-term picture indicates a higher week next week. The thing mitigating this is that the Stochastics indicator was on it's way down toward the oversold level when it turned up a month ago. I think the downtrend will continue until that indicator goes below the 20 level. With that taken into consideration the market show go lower next week.