Friday, June 27, 2008

Oil - S&P 500 Index



Oil is breaking to the upside, and the dollar is weakening.




The reaction of the S&P 500 Index to the monthly open typically is a good tell as whether the month will be bullish or bearish. The market in June has not attempted to test the June open, and has been consistently bearish.
The last week of June is statistically bearish, according to the "Stock Trader's Almanac", with the first two weeks of July being more bullish, followed by a sell-off in July's third week. If long term investors are interested in being long for the second half of the year, they typically start buying in the last week of July. If there is low buying interest during the last week of July, the rest of the year could be weak also.
Charles
P.S.: On Wednesday, I took a day trip to Columbus, Ohio, which is a two hour trip for me. When I took this same trip last September, the Interstates were full with both trucks and passenger cars. On Wednesday, the traffic on the Interstate was noticeably less, and I would say much less than last September. Energy costs are having an effect.

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