The markets continue to sell today with the SPDR S&P 500 ETF (NYSE:SPY) trading at $130.68, -1.15 (-0.88%). Libya is on the verge of civil war and the markets continue to worry that the unrest and protests will spread to Saudi Arabia. Oil continues to run higher today, the United States Oil Fund LP (NYSE:USO) is trading at $40.03, +1.54 (+4.00%). Should Saudi Arabia see massive protests and violence, oil could go to $150.00 per barrel very quickly.
The price of oil is currently the biggest obstacle to the Federal Reserve in terms of the global and domestic recovery. A large spike in oil will cause all economies to slow, stalling the rebound. The Federal Reserve has used massive amounts of money to stimulate the economy.
The markets are lower for their second consecutive day. This has not happened in months and maybe a larger signal of a market top. All eyes continue to be on the Middle East.
Gareth Soloway
InTheMoneyStocks.com
