May 15, 2008

The price of oil was once again on the forefront as it managed to finish down on the day. Wall Street is watching the price of oil very closely, as the higher that prices rise, the less able that consumers will be able to purchase their iPods, big screen tv’s, and other toys that the economy depends on us to buy (2/3’s of GDP is consumer spending – so the price of oil and its affect on consumer spending is of great concern to the U.S. economy). NASDAQ broke out above resistance and we will look to see whether it can show strength and extend those gains or whether it will sell-off and once again test its trend line. The S&P is facing resistance and will need to break through these levels or it is likely to retrace back to the upward trend line in place.

Now to the NASDAQ and S&P Charts…