The US market just fell the biggest number for the month of May which has been falling most of the days. Perhaps like me you are wondering “how low can we go?” Euro issues are again the drivers of the market, with Greek elections failed and needing to be done again, amidst the uncertainty of Euro government coming to the rescue. I was constantly eyeing numbers, thinking we’re following last year and even the year’s before’s pattern (also courtesy of EU and Greece woes) — for oil, when it fell past $100 mark, I thought the $ 90 won’t stand a chance and so would the $80 — given the elections is still weeks a way — and a lot of things can happen in even a few days!
I am chewing on the idea on when this could possibly turn around, following the charts last year and definitely after Greeks are done with the election, and possibly before the November election in the US….. somewhere between June and August. I don’t suppose Mr. Obama who wants to be reelected will leave things too late for the economy, at least for jobs. But then again anything can happen — — US Fed Chairman Ben Bernanke report to Congress will be a highlight this coming week, given the dismal jobs numbers released today and low manufacturing stats from China, talk of further stimulus in China, as well as US or quantitative easing “QE3” is again being floated. However, bank woes like the ones in Spain can always come up and disrupt the path to recovery. Then there’s the London Olympics by end of July.
In short, keep watching the market. Check out this video from Bloomberg for some clues on the S&P trends.
