Wednesday, June 4, 2008

Looking for a late spring bottom

Hi there,
and welcome back to RI's S&P 500 blog.



The long slow process of correcting is apon us. As I have stated in previous posts, the old adage "Sell in May and walk away" suggests we ought to see some sort of pull back in the major stock indicies over the coming weeks. We are in the midst of that pull back with the SPY off 3% from the highs seen just three weeks ago. I am still looking for a serios test of the 1 year up trend line (at or near $132.50 on the SPY itself). Rocketing higher oil prices, more troubles from the financial sector and now a united Democratic party (behind B. Obama) shall stress the markets for the coming weeks.
Enjoy the show and don't be in a big hurry to buy anything for the time being.
Brian Beamish FCSI

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