Company Description: Raytheon Company engages in the design, development, manufacture, integration, and support of technological products, services, and solutions for governmental and commercial customers in the United States and internationally. It operates in six segments: Integrated Defense Systems (IDS), Intelligence and Information Systems (IIS), Missile Systems (MS), Network Centric Systems (NCS), Space and Airborne Systems (SAS), and Technical Services (TS). The IDS segment provides ballistic missile defense, including space, air, surface, and subsurface; naval; and maritime and homeland security solutions. The IIS segment provides integrated ground systems for signal and image intelligence; weather and climate systems; command and control solutions for air/space platforms; operations, maintenance, and engineering services; and information technology and homeland security solutions. The MS segment provides weapon systems, including missiles, smart munitions, projectiles, kinetic kill vehicles, and directed energy effectors. The NCS segment provides net-centric mission solutions for network sensors, command and control communications, air traffic management, and homeland security. The SAS segment provides integrated systems and solutions for advanced missions, including surveillance and reconnaissance, precision engagement, unmanned aerial operations, and special force operations and space. The TS segment specializes in counter-proliferation and counter-terrorism, base and range operations, engineering and manufacturing services, and mission support. It primarily serves defense and government electronics, space, information technology, and technical services and support markets. The company was founded in 1922 and is based in Waltham, Massachusetts.

Our Analysis: The shares of Raytheon Co. 'RTN' set a new multi-year closing low on heavier than normal trading volume. In the process they closed below recently established support levels. This is a very bearish trading signal. The shares of 'RTN' should continue to move lower and test $39.83/share, a former point of upside resistance established on July 27th,2005 that has now become downside support. If the shares of 'RTN' close below that level as I expect they will, then the shares of 'RTN' should continue to move lower and test $36.34/share, a point of support established in October of 2005. I see upside resistance on the shares of 'RTN' @ $43.40/share, and have established my stops accordingly at $43.77/share.