The
Weekly Report For June 1st - June 5th, 2009
May 31,
2009- Market Summary
The U.S. financial markets managed to finish higher for
the third consecutive month despite the increasing fears of inflation.
The story of the week was the sliding dollar, which helped push
the price of several commodities higher. The price of silver saw
the biggest monthly gain in 22 years, while oil prices dominated
the headlines with a move above $66 per barrel for the first time
since November. (For further reading, check out Play
Foreign Currencies Against The U.S Dollar - And Win) Optimism
around a potential recovery in the economy continues to fuel stock
prices and the question remains whether it will be sustainable.
As we mentioned in our previous report, the major indexes are flirting
with the resistance of their respective 200-day moving
averages. From a technical perspective, the nearby resistance
could put the brakes on the recent rally because
it is used by many traders to determine the direction of the market.
A new uptrend will not be confirmed until we see a break above these
important barriers. (To learn more about levels of resistance, be
sure to check out the Support
And Resistance section of our Technical
Analysis Tutorial.)
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