- Bears Taking Control?

Market Summary
It was a week of mixed results as the bulls managed to shrug off another set of lackluster economic announcements. The volatility has been frustrating for active traders and it likely caused many to get whipsawed out of their positions. We've noticed that several of the major indexes are trading within a triangle formation and we expect that the sideways momentum that has dominated the price action over the past few weeks will end soon. As you can see from the chart of the Russell, Friday's move lower sent the index below the lower trendline, which suggests that the bulls are losing control of the direction. It will be interesting to see if the Russell's brief move below the trendline is an early signal of things to come. It will be extremely important for the bulls to continue with Friday's end-of-day momentum because a close below the trendline will lead to the next wave of selling pressure.