Tuesday, August 26, 2008


The Russell has been the strongest index during this rally so far. Notice it just bounced off resistance at the 75 week moving average similar to the S&P during the Mar. to May rally.
The S&P so far has not been able to regain the 200 week moving average. This has been a very weak rally up till now. Most of it predicated on the assumption that falling oil will some how prevent the economy from falling into recession. I think that is going to be a false assumption. Falling oil just means the one sector that was still working in the economy is now probably rolling over along with everything else.