August 26, 2008
Markets finished in mixed fashion today as there was little news to move stocks in either direction. However, we could see oil pick up some steam in the days ahead as Hurricane Gustav approaches the U.S. and the heart of oil production (i.e. Texas and its off-shore rigs). If Gustav gets anywhere near that area, oil will surely shoot up, especially if the hurricane’s winds continues to intensify. From a technical standpoint, oil has broken its downward trend and leveled off some, and combined with the hurricane approaching early next week, you have yourself a nice catalyst to work with or should we say the “Perfect-Storm”.
Concerning the indices, the Nasdaq and S&P are struggling to find there footing after rallying nicely over the past month. With the Nasdaq, it is very hard to tell where it is trying to go as it could simply be a low volume pullback or a newly developing downward trend. The picture on the S&P is slightly clearer as a clear support line has formed and any close below it should be cause for concern for longs.
Here’s the Nasdaq and S&P charts…
