Hitting and breaking through $1344.15 was big and we have been working on this since February 18 of this year. The next level is 100 points away or another 8% and there is nothing in between to act as resistance. Does this mean we zoom straight to $1440? No way, but it will be interesting to see what happens in the next few months. Summer is normally slow sideways trading and sometimes very volatile. The one thing that has me just a bit worried is this, fuel prices. Do you think that most major companies will be able to pass the cost of fuel to their customers or will they have to absorb them? If they absorb them it will hurt earnings which will slow the stock market down. The other thing is how much lower can the US dollar go before it reverses? When it starts back uphill, once again it will hurt the bottom line of any company that exports their goods worldwide. So, there are some negatives to deal with in the market, but what market doesn’t have them? Either way I will try my best to follow the trends and not the news and gather as much as this long term trend will give me.
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