Did anyone else find it concerning that President Bush, in a news conference yesterday, was astonished by a reporter’s question asking what would be the effects of gasoline prices at the pump reaching $4.00 per gallon by the summer?

It would seem like his team of economic advisors would have alerted him to this possibility, at least so he could have a credible response.

Anyway, enough of that. Let’s look at the recent charts of the US Dollar and Crude Oil prices:

And let’s peek at the weekly chart to see what implications that might show:

If price completes a “measured move,” which would be from the most recent price swing from $70 to $100, then the potential price target from this possible flatline flag break would also be $30, which would take price to $120 or $130 per barrel.

The Federal Reserve tells us that the economic slowdown that we are experiencing will help curb demand on gasoline/oil and thus keep the price in check, and that very well may be the case, but it’s not happening yet. The technical pattern of crude oil certainly puts the odds for higher oil prices as greater than lower prices at the moment. We will continue to monitor this situation with great interest, and what it may mean for the overall market.

And finally, the US Dollar Index made a new low while crude oil made a new high:

The US Dollar Index made all time lows at $73.62, and made new lows against the Euro. It now takes $1.51 Dollars to purchase one Euro. This is not good for US tourists abroad, but is actually somewhat good for large, multinational companies based in the United States.

Both trends are still strongly in force, and will continue to be so until price forms a clear reversal. Visit or join Market Club for daily updates, analysis, and insights.