Crude Oil Opens Lower Monday Morning

May crude oil was lower due to profit taking overnight as it consolidates some of last Thursday's rally.

Stochastics and the RSI are neutral signaling that sideways trading is possible near term. Closes below the reaction low crossing at 47.26 are needed to confirm that a short term top has been posted.

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

Monday's pivot point, our line in the sand is 51.50.

First resistance is last Friday's 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.

Crude oil appears to be range bound at this point in the 47 to 54 area. Most traders should be looking to go long on all dips into the 47 to 48 area while less conservative traders may also want to short crude in the 53 to 54 area.

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The June S&P 500 index was lower due to profit taking overnight as it consolidates some of last Thursday's rally. Stochastics and the RSI are overbought, diverging but are turning neutral to bullish signaling that sideways to higher prices are possible near term.

The June S&P 500 Index was down 7.50 points. at 845.10 as of 5:53 AM CST. Overnight action sets the stage for a lower opening by the June S&P 500 index when the day session begins later this morning.

If June extends the rally off March's low, February's high crossing at 867.50 is the next upside target. Closes below the 20 day moving average crossing at 808.32 are needed to confirm that a short term top has been posted.

Our SP 500 pivot point, our line in the sand is 843.50. If we break below 843 in the regular trading session we will go short for our SP day trade.

First resistance is last Thursday's high crossing at 854.50.
Second resistance is February's high crossing at 867.50.

First support is the 10 day moving average crossing at 822.91.
Second support is the 20 day moving average crossing at 808.32.

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

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

First resistance is the overnight high crossing at 86.22.
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.