Monday 21. 2011 was a Presidents day so the market was not open but on Tuesday February 22, 2011 the Dow Jones open at 12389.74 and the Dow closed on Friday at 12130.45 which was down for the week by 259.29 points.
Tuesday February 22, 2011 was all about the turmoil with Libya and North Africa continue to make headlines. Tueday was one of the worst day in the market closing down about 73 points. Which also rallied the oil.
Wednesday was not much better The Dow Jones dropped 46 points still the turmoil in Libya is still affecting the markets.
The turmoil is getting worse in the Middle East Protesters control a good protesters of Libya.
So the number crunchers are putting together possible “what-if” scenarios for the oil market. One such possibility is: What if Algeria joins Libya in revolt. Both countries produce 4 million barrels of oil per day. If such events develop, oil could surge to $220 per barrel, according to Nomura Securities in the Wall Street Journal.
By the end of the week oil had pulled back from $100.00. Last time oil hit over $100.00 a barrel was back in 2008. This will be a resistance and we will see if it just tests it and then falls to a support level, or if all the panic with the Middle East pushes oil over $100.00 and stays.
We will see what the up coming week holds for us. I did say that the market did need a pull back and alot of the stock fell to their 50 day moving average.