Even though it is a "krazy" prediction, I have to agree we will see 1050 in October. With regard to oil, while we agree high oil prices put a damper on businesses and thus the market, I think the effect can be quite delayed. And too, the price now is only at the high end of what many analysts are saying is the expected range. I think it's got to go quite a bit higher before the broader market reacts. Another factor to consider is that the dollar has been sliding down, and the effect of this is to lift the market and lift oil and commodity prices in general. So we have two opposing forces. And don't forget we have an election coming up. I am forced to remain rather bullish, uncharacteristically so for an October. Personally I would either be neutral or bullish here, not short, at least not until the 50 MA turns down again. One weak day does not a market make, we would have to have considerable follow through to the downside for me to don my bear suit. Disclaimer: Everything in this post is the result of chemically driven brainwaves, and there is no proof that any of it is true.
So 1150 is taken out, next resistance is around 1170-1175, once we break that 1250 and before you know it fresh highs on the SPX to 1550+ and the credit crisis will look like it never happened. Bubble ben bernanke thank you for all the bailouts and free trillions!!!!! It will take another decade to get to SPX 2000 and during that decade will see the next collapse take it right back under 1000.
I notice what kind of day it is, its a day where the market pulls back .05% every 15 minutes only to make new intraday highs into the close. Same pattern over and over and over again. Does it ever get old.