S&P 500 Emini Weekly chart

This is the weekly chart for the S&P 500 Emini. As you can see we have a trendline just under 1233 with another area of support at 1213. I expect us to test it this week as the Dow approaches 11,000.

Watch for some major support and buyers to come in in the the 1213 area, from here we have a nother 30 points to go for the next major support. We are also watching to see if we get new lows on the RSI for a continuation on this move.

July 3 SP 500 up 2.75 before the three day weekend

Treasury two-year notes gained after reports showed payrolls fell for a sixth straight month and U.S. service industries unexpectedly contracted in June, reducing speculation the Federal Reserve will raise interest rates. Which by the way puts us behind the Euro again. We will see a pull back on the euro but am expecting to hit new highs.

The 62,000 drop in payrolls was more than forecast, and followed a revised 62,000 decline in May that was greater than initially reported, the Labor Department said in Washington. The jobless rate remained at 5.5 percent after jumping in May by the most in two decades. The drop in payrolls in each month of the year is the longest streak since 2001-2002. The economy shed jobs for 14 months beginning March 2001, the same month it entered a recession.
Some analysts and investors are reversing predictions that the worst of the credit-market contraction is over after more than $400 billion of writedowns and losses by the world's largest financial institutions. Lehman Brothers Holdings Inc. last month increased its quarterly loss estimate for Merrill Lynch & Co. and more than doubled its prediction for Merrill's subprime writedown, to $5.4 billion.

Citigroup Inc. and Merrill had their second-quarter earnings estimates cut yesterday by Oppenheimer & Co.'s Meredith Whitney on expectations of writedowns related to the subprime market and bond-insurer downgrades. Crude oil futures touched a record above $145 a barrel in New York on concern conflict with Iran would cut oil supplies.

Oil pullback and then off we go.

The question, what does it look like for the price of oil?
Lets see, war with Iran, hurricane season on way, Refinery utilization down, global demand sky rocketing, cantrell oil field production down causing mexicos overall exports to drop 12.5% this month, I am bullish oil.

But I am bullish after we see a bit of a pull back. We didn't push through the 150 price by the fourth of July so it looks like we will see a bit of a pullback and then take off. World is still in consumer price shock to these surging prices and demand will fall off a bit as discretionary traveling will go down. Remember this is summer and the biggest time for families to take vacations. Give them a few weeks bottled up in their homes with the kids and the toys will be broken out and we will see families hitting the road for shorter trips in the RVs with boats and ATVs.