Weekly Review (5/30/06 – 6/2/06)

Oil Price

The market finished this week barely changed. For the week, the Dow lost 0.27 percent, while the S& P 500 added 0.63 percent and the Nasdaq rose 0.41 percent.

My analysis showed a danger in this week, but expected it would happen later on Friday. As we saw, it came earlier on Monday. Because the pressure was released, the market went down a little on Friday only. The market returned to its starting point almost this week.

I noticed one sign which is the Nasdaq was better than the Dow for this week. It is too early to say whether it is a signal yet. We have to watch them for another week. If it is true, it would be a positive sign in weeks.

What is the driving power for next week? Most likely it is the oil price. During the past couple days, the oil climbed quietly already. It did not stir the market very much. But, if it keeps its advance, or any bad news, it will storm the market. The news on the summer or the hurricane concern, the news from Nigeria, and the news about Iran… Any of them would drive the oil up and push the market down.

When peoples are watching and conservative, we cannot expect the market will have any exciting performance. The market of next week will be flat or at small down most likely.