Stocks for the most part eked out modest gains this week as volatility remains dormant. For the week, the Dow Jones Industrial Average (chart) finished up 0.26%, the Nasdaq (chart) +0.41%, the S&P 500 (chart) +0.33% and the Russell 2000(chart) actually ticked down less than a quarter of a percent.
The S&P 500 (chart) did manage to close at its highest level in almost four years, however, oil keeps creeping higher as well and closed at almost $110 a barrel. If oil continues its upward trend, this could be the one catalyst that begins to put the brakes on this multi-month bull market run we have witnessed. The payroll tax cut extension will help off-set rising gas prices but I don’t think anyone wants to see oil prices climb higher or gas prices at $5.00 or $6.00 a gallon.
Everyone from economists to technicians have been proclaiming that the market is due to pause, that it’s overbought and needs a retracement. Well if oil trades above the $120 mark in the near future, we may just get what the pundits are predicting.
Have a good weekend 🙂