Stock Market Summary - 06/25/10

The Dow Jones, S&P 500 and Nasdaq finished a down week that has created almost exact technical stock charts for all.

The candlestick patterns for this week trade are very interesting.  Last week we showed upward pentration of the 21 day moving average and showed the ability to hold the gains on Wednesday through Friday.  Monday of this week the market moved higher, reaching 10,600 before closing down creating a doji close.

Tuesday the index had a big down day and penetrated the 200 day moving average.  We then followed the pattern two more times with a doji close followed by a large down day.

The question now is, are we at a point of resistance and creating an upward channel or do we continue down to the horizontal resistance of 9,800?  Upward channels are a technical stock indicator that normally results in a break to the down side.

The S&P 500 and Nasdaq charts look the same.