Crude Oil Opens Down, Lower Prices Possible Near Term

May crude oil was sharply lower overnight and appears to be breaking out to the downside of this spring's symmetrical triangle formation.

Stochastics and the RSI remain neutral to 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.

The pivot point for Monday is 50.44

First resistance is the 20 day moving average crossing at 50.89.
Second resistance is the reaction high crossing at 52.45.

First support is the reaction low crossing at 47.37.
Second support is the reaction low crossing at 47.26.

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Overnight action sets the stage for a lower opening by the June S&P 500 index when the day session begins later this morning.

The June S&P 500 index was lower due to profit taking overnight as it consolidates some of its recent gains. Stochastics and the RSI are overbought but are neutral to bullish signaling that sideways to higher prices are still possible near term.

If June extends the rally off March's low, January's high crossing at 937.00 is the next upside target. Closes below the 20 day moving average crossing at 829.14 are needed to confirm that a short term top has been posted.

The pivot point, our line in the sand, for Monday is 864.25

First resistance is last Friday's high crossing at 867.00.
Second resistance is January's high crossing at 937.00.

First support is last Wednesday's low crossing at 831.70.
Second support is the 20 day moving average crossing at 829.14.

The June S&P 500 Index was down 11.40 points. at 855.40 as of 5:45 AM CST.

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The June Dollar was higher overnight and is trading above the reaction high crossing at 86.62 thereby renewing the rally off March's low. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term.

Closes below last Monday's low crossing at 84.72 would confirm that a short term top has been posted.

First resistance is the overnight high crossing at 86.85.
Second resistance is the reaction high crossing at 88.26.

First support is the 10 day moving average crossing at 85.62.
Second support is the 20 day moving average crossing at 85.33.