- Bearish Momentum Continues

Market Summary
The bulls managed to send the major indexes higher early in the week, but the onslaught of negative economic announcements became too much for the bulls to handle. One chart of specific interest is the Dow because it closed within 11 points of its February high and then quickly reversed. This chart is a good example of the type of overhead resistance that is currently preventing the bulls from staging a major reversal.

In our previous report, we mentioned that several of the major indexes have been trading within a triangle formation. As you can see from the chart of the Russell, the move below the lower trendline suggests that the bulls are quickly losing control of the direction. It will be interesting to see if the bulls can respond to the correction like they did early last week or whether the downward momentum will continue.