Daily Investment Interpretations

June 8, 2009

2009-6-8:  The indices marched in place again today. After bursting out of their trading ranges last week, the indices have temporarily stalled just above the tops of their ranges. The immediate causes given for this behavior are rising interest rates and rising oil prices. However, the rumor that the Fed may start raising rates late this year suggests to me that the Fed feels assured that a recovery is in the works.
    The NASDAQ Composite declined 7.02 points (-0.38%) to 1,842.40, the Dow added a negligible 1.36 points (0.02%) to 8,764.49, and the S&P 500 subtracted 0.95 points (-0.1%) to close at 939.14.  Oil climbed a mite to $68.51 a barrel, while gold receded $10 to $953. The VIX minced up 0.15 to 29.77.
    In short, nothing happened today.
    In the meantime, the three major indices are significantly above their 200-day moving averages, and are continuing to work their way upward.
    I have prepared a recap of the super-bull/super-bear market pattern here for friends.