Crude Higher On Short Covering, Signals Turn Bearish

May crude oil was higher overnight due to short covering as it consolidates some of this week's decline. However, stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term. Closes below the reaction low crossing at 47.26 are needed to confirm that a short term top has been posted.

Closes above March's high crossing at 54.66 are needed to confirm an upside breakout of the current consolidation pattern.

First resistance is the reaction high crossing at 53.90.
Second resistance is March's high crossing at 54.66.

First support is last Wednesday's low crossing at 47.37.
Second support is the reaction low crossing at 47.26.

-------------------------------------------------------------------------------------

The June S&P 500 index was steady to slightly lower due to profit taking overnight as it consolidates some of its recent gains. Stochastics and the RSI are overbought and are turning neutral to bearish hinting that a short term top might be in or is near. Closes below the 20 day moving average crossing at 819.51 are needed to confirm that a short term top has been posted.

If June extends the rally off March's low, February's high crossing at 867.50 is the next upside target.

Thursday's pivot point, our line in the sand is 844.

First resistance is Monday's high crossing at 861.30.
Second resistance is February's high crossing at 867.50.

First support is Wednesday's low crossing at 831.70.
Second support is the 20 day moving average crossing at 819.51.

The June S&P 500 Index was down 1.10 points. at 847.40 as of 6:00 AM CST. Overnight action sets the stage for a steady to lower opening by the June S&P 500 index when the day session begins later this morning.

-----------------------------------------------------------------------------------

The June Dollar was higher overnight due to short covering as it consolidates some of Monday's decline. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term.

If June extends this week's decline, last Monday's low crossing at 84.10 is the next downside target. Closes below last Monday's low would open the door for a possible test of March's low crossing at 83.15. Closes above last Thursday's high crossing at 86.24 would open the door for additional short covering gains during April.

First resistance is last Thursday's high crossing at 86.24.
Second resistance is the reaction high crossing at 86.61.

First support is last Monday's low crossing at 84.10.
Second support is March's low crossing at 83.14.