- A Tough Week For The Bulls

Market Summary
It was a tough week for the bulls as the markets were flooded with troubling economic announcements. In our last report, we noted that the majority of the indexes were in the process of testing the resistance of their respective 50-day moving averages. As you can see from the charts below, the bulls were able to briefly send the prices above the resistance, but the rally was short-lived. On Friday, J.C. Penney Inc. (NYSE:JCP) slashed its first-quarter earnings forecast based on decreased consumer confidence, triggered by higher gas prices and a weakening economy. It will be interesting to see if the pressures that led to J.C Penney's disappointment will affect other retailers and lead to further weakness in the major indexes.