June crude oil closed down $4.02 at $48.45 a barrel today. Prices closed near the session low today, hit a fresh five week low and saw a bearish downside "breakout" from a wedge pattern on the daily chart. Crude oil bears have regained the near term technical advantage. A big drop in the stock market today and a stronger U.S. dollar helped to pressure crude oil.
The June U.S. dollar index closed up 71 points at 87.00 today. Prices closed near the session high and hit a fresh four week high today. Bulls have regained the near term technical advantage.
The U.S. stock indexes closed solidly lower today and near their session lows. The bulls faded today and need to show fresh power soon, or else the recent uptrends on the daily charts will begin to "roll over" and start to produce bearish chart signals.
A heavy slate of corporate earnings reports are due out this week and traders will examine them very closely. It's likely that most of those reports will encourage the stock index bears.
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