Crude Oil Extends The Spring Rally, Closes Higher

July crude oil closed higher on Friday as it extends this spring's rally. The high range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near term.

But crude oil bulls should not let this go to their heads. Nothing goes straight up for long and the dollar will correct, if only temporarily, and crude will correct along side of it. The word on the street seems to be 68.49 [$70] is doable near term, don't get caught being the only one holding the crude oil bag beyond that.

If July extends the rally off April's low, the 25% retracement level of the 2008-2009 decline crossing at 68.49 is the next upside target. Closes below the 20 day moving average crossing at 59.88 would confirm that a short term top has been posted.

First resistance is today's high crossing at 66.47
Second resistance is the 25% retracement level crossing at 68.49

First support is the 10 day moving average crossing at 61.86
Second support is the 20-day moving average crossing at 59.88

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The June Dollar closed sharply lower on Friday ending a four day short covering rally and closed below the 62% retracement level of the 2008-2009 rally crossing at 79.80. The low range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are oversold but remain neutral signaling that sideways to lower prices are possible near term.

If June extends this month's decline, the 75% retracement level of the 2008-2009 rally crossing at 77.55 is the next downside target. Multiple closes above the 20 day moving average crossing at 81.98 are needed to confirm that a short term low has been posted.

First resistance is the 10 day moving average crossing at 80.73
Second resistance is the 20 day moving average crossing at 81.98

First support is today's low crossing at 79.27
Second support is the 75% retracement level crossing at 77.5

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The June S&P 500 index closed higher on Friday as it extended this week's rally. The high range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are turning bullish signaling that sideways to higher prices are possible near term.

From a broad perspective, June needs to close above 929.00 or below 875.40 to clear up near term direction in the market.

First resistance is Wednesday's high crossing at 913.80
Second resistance is last Wednesday's high crossing at 923.20

First support is Tuesday's low crossing at 876.90
Second support is the reaction low crossing at 875.40

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