Record Crude Future

4/15/08

Crude Future is flying to uncharted territory with closing at 113.79. The major stock indexes are all positive with PPI inline. Intel posted good earning and make a good comment on outlook after market close. WM posted worst than they said last week. However, food price is rising very rapidly not only in US...it is a worldwide problem. Also, there is an indication that England, Spain, Eastern Europe, India and China all having their housing bubble is bust as similar as US. Therefore, US recession will spread over to global and US probably would enter prolong and deep recession that could compare with the Great Depression.
Technically, Dow is testing 12250 while S&P is positioned to test 1325. It is critical for both indexes to get support around these support band. Otherwise, we will see the retest of this year lows for both indexes very soon and most likely it may not be a strong support since this is going to be the third time. Usually, the third or forth time retest the same support levels would fail during bear market. Let see the rest Big companies earnings and how the market moving.