The DOW is currently trading in a sideways range or box.  There is substantial resistance from trading activity in 2004 and 2005.  It should be difficult to continue higher at this point.  The trend is tiring and it appears that it is time for a pullback.  Friday printed a Shooting Star type pattern on significant volume.  I feel that the index will move back down in the range and test the lower trend line of the broadening channel.

The SPX is has also been trading in a consolidation pattern for the last three weeks and appears that the trend has weakened tremendously.  The ADX supports the thesis of a  diminishing trend and we also have a Bearish MACD divergence and crossover with confirmation from a Bearish Stochastics.  We are more than likely headed back down in the range to test the lower trend line of the channel.

The COMPQ has been very erratic over the last three weeks with several gaps and indecisive trading.  There is major resistance at 2200 and I feel that the index will trade sideways to down in the immediate term.  Look for a test of the 50 days simple moving average and the lower trend line of the channel about 2135-2140.

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