Finally a day in which oil shows some weakness, which is undoubtedly welcomed news to consumers. There were also some feel-good reports that the worst may be over in regards to the credit crisis. In regards to oil though, the price increases seen in this commodity have been off the charts, and will likely see a correction, eventually, just as severe as its initial run-up. The velocity in extreme price increases is usually met equally when prices begin to decrease. We’re at a point, at least in the short-term, where prices are parabolic. Also of note, is the action in the S&P and the perfect bounce off of the upward trend line, just as we had expected.

Now to the NASDAQ and S&P Charts…