I guess Friday’s action was predictable as the Dow was right near the high set only a few weeks ago.  So, after a sharp move up, a small retreat was certainly in the cards.  I’m not sure it marks a new wave down, but I’d wait for a close above resistance before turning heavily to the bull side.

As for specific stocks, I wanted to look at Yahoo! (YHOO) after all of the hullabaloo about the new chief executive officer.  I don’t know if she’ll be good or bad, but the stock is worth buying if it can eclipse that current triangle to the upside.

Finally, I still believe General Electric (GE) is a bellwether stock and like the Dow it seems to be marking time.  Overall, the prospects look bullish, but like Yahoo!, I’d wait before acting.

That’s it for this week.  I honestly think we’re in the “summer doldrums” for now, so expect more choppiness in weeks to come.

Gary B. Smith joined FOX News Channel in 1999 and is currently a regular commentator on "Bulls & Bears," including his own segment called, "The Chartman."