Crude Oil Struggles At The $50 Level, Unemployment Numbers Weigh On Demand

June crude oil was higher due to short covering overnight as it consolidates some of this week's decline. But higher unemployment numbers may weigh on demand and lower than expected numbers from UPS this morning look to weigh on the entire market.

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

If June extends this week's decline, the reaction low crossing at 45.11 is the next downside target.

Closes above the 20 day moving average crossing at 51.99 are needed to confirm that a short term low has been posted.

Today's daily pivot point, our line in the sand is 48.48

First resistance is the 10 day moving average crossing at 51.18.
Second resistance is the 20 day moving average crossing at 51.99.

First support is Tuesday's low crossing at 46.72.
Second support is the reaction low crossing at 45.11.

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The June Dollar was lower due to profit taking overnight as it consolidates some of Monday's rally. Stochastics and the RSI are turning neutral hinting that a short term top might be in or is near.

Closes below last Monday's low crossing at 84.72 would confirm that a short term top has been posted. If June extends Monday's rally, the reaction high crossing at 88.26 is the next upside target.

First resistance is Monday's high crossing at 87.22.
Second resistance is the reaction high crossing at 88.26.

First support is the 10 day moving average crossing at 85.97.
Second support is the 20 day moving average crossing at 85.70.

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The June S&P 500 index was higher overnight [Index was up 6.80 points. at 843.60 as of 5:58 AM CST.] due to short covering as it consolidates above the 20 day moving average crossing at 833.00. Stochastics and the RSI are bearish signaling that a short term top appears to have been posted. Closes below the 20 day moving average crossing at 833.00 are needed to confirm that a short term top has been posted.

If June renews the rally off March's low, January's high crossing at 937.00 is the next upside target.

The daily pivot point is 844.

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

First support is the 20 day moving average crossing at 833.00.
Second support is the reaction low crossing at 802.60.

The June S&P 500 Index was up 6.80 points. at 843.60 as of 5:58 AM CST. Overnight action sets the stage for a higher opening by the June S&P 500 index when the day session begins later this morning.


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