Crude Oil Enjoys The Equities Rally, Still Below 20 Day Moving Average

May crude oil was higher due to short covering overnight as it consolidates some of this week's decline but remains below the 20 day moving average crossing at 50.85.

Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term.

Closes below last Wednesday's low crossing at 47.26 would confirm that a short term top has been posted.

If May renews last week's rally, March's high crossing at 54.66 then January's high crossing at 58.31 are the next upside targets.

First resistance is the 20 day moving average crossing at 50.85.
Second resistance is last Friday's high crossing at 53.90.

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

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The June Dollar was lower overnight as it consolidates some of this week's rally. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near term.

If June extends this week's rally, last week's high crossing at 86.61 is the next upside target. Closes below Monday's low would open the door for a possible test of March's low crossing at 83.15.

First resistance is Thursday's high crossing at 86.13.
Second resistance is the reaction high crossing at 86.61.

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

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The June S&P 500 index was higher overnight as it extends Wednesday's upside reversal. However, stochastics and the RSI are overbought, diverging and remain bearish signaling that a short term top might be in or is near. Closes below the 20 day moving average crossing at 802.59 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.

First resistance is Monday's high crossing at 847.90.
Second resistance is February's high crossing at 867.50.

First support is the 20 day moving average crossing at 802.59.
Second support is last week's low crossing at 775.70.

The June S&P 500 Index was up 5.80 points. at 828.40 as of 6:00 AM CST. Overnight action sets the stage for a higher opening by the March S&P 500 index when the day session begins later this morning.