June 6th, 2008
As I wrote yesterday, the Market’s swirling around the 60-day moving average … and swirling and swirling and still swirling. As of right now, at around mid-day, the S&P took back all of yesterday’s gain and is now just below Wednesday’s close. It’s attributed to today’s stupendous blow-out sort of move in oil prices but here’s the upside, if there is any ……
The decline could have been even steeper than it is, so far. We’re still above the 60-day and 90-day moving averages and still above the support resistance trendline stretching back to these same levels serving a support role in 1997 (the March and August lows, if you can remember back to what now seems like a different age given all we’ve live through since then). True the trendline failed to serve as support during the first half of this year (the market fluctuated in a horizontal channel around the trendline) but perhaps it will doing so now:
I’m not making any drastic changes to my positions at the present time; I’m waiting to see if the Index is able to stay above those moving averages. If it can’t, “look out below”. There’s enough loud, background noise from the economy offering reasons and causes for the market to head further south.
It’s going to be a tense and anxious weekend waiting for the market to open on Monday. I’m going to try taking my mind off the Market by making my first visit this weekend to the Rock and Roll Hall of Fame in Cleveland so you’re on your own until Tuesday. Good luck and please don’t roil the market too much in my absence.