Daily Investment Interpretations

August 25, 2008

2008-8-25:   Oil closed down slightly today at $115.11. Hurricane Gustav is headed for the Gulf of Mexico where it may well interfere with offshore oil production. The indices moved sharply lower today as worries about the financial sector resurfaced. The Nasdaq Composite fell 49 points to close at 2,365.59. The Dow lost 241.81 points to end the day at 11.385.25. The S&P 500 declined 25.36 points to close at 1,266.84, while the VIX jumped to about 21. What's worrisome about this is that the chart pattern suggests to me the possibility of a new breakdown to lower lows. (Unfortunately, none of the technical market forecasters whom I monitor has emerged to read the runes.)