Sand Spring Advisors LLC

Evolving into Summertime Chop

June 18, 2006

by, Barclay T. Leib

Sand Spring has been quiet in June watching the secondary correction unfold off of the early June equity highs. We have no definitive bullish or bearish proclivities at present, but do believe that the Fibonacci rhythm depicted above may serve as a rough guide-map for this market across a choppy summer that should eventually yield toward "one last hurragh" rally into February 2007.

More immediately,on a short-term trading basis, S&P rallies toward 1272 are likely to fail around that level, while the lows of last week will likely hold for awhile.

Since this volatile and choppy trading range is not likely to be exactly inspirational or lead to dynamic breakouts, readers may expect us to remain a bit on the quiet side.