June crude oil was higher Sunday evening due to short covering as it consolidates some of last Friday's decline. As I write crude is up $1.74 at 58.10 well above our pivot point of 57.14. However, stochastics and the RSI have turned bearish signaling that sideways to lower prices are still possible near term.
More than ever we are pitted against the dollar. Professional traders expect the Euros rally against the dollar to be short lived for the near term, however government policies right now are based on making the dollar as weak as possible making another crude bull rally waiting right around the corner.
Closes below the 20 day moving average crossing at 54.07 are needed to confirm that a short term top has been posted.
If June renews this spring's rally, the reaction high crossing at 65.00 is the next upside target.
Monday's pivot point is 57.14
First resistance is last Tuesday's high crossing at 60.08.
Second resistance is the reaction high crossing at 65.00.
First support is last Friday's low crossing at 56.07.
Second support is the 20 day moving average crossing at 54.07.
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The June Dollar was lower overnight as it consolidates some of last Friday's rally but remains above the 75% retracement level of the December-March rally crossing at 827.50. Stochastics and the RSI are oversold but are turning bullish hinting that a short term low might be in or is near. Closes above the 10 day moving average crossing at 83.14 would temper the near term bearish outlook in the market.
If June renews the decline off April's high, the 87% retracement level of the December-March rally crossing at 81.49 is the next downside target.
First resistance is the 10 day moving average crossing at 83.14.
Second resistance is the 20 day moving average crossing at 84.25.
First support is last Wednesday's low crossing at 81.98.
Second support is the 87% retracement level crossing at 81.49.
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The June S&P 500 index was higher overnight due to short covering as it consolidates above support marked by the 20 day moving average crossing at 881.90. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term.
Closes below the 20 day moving average crossing at 881.90 would confirm that a short term top has been posted while opening the door for a larger degree decline this spring. Closes above the 10 day moving average crossing at 901.16 would temper the near term bearish outlook in the market.
Monday's pivot point, our line in the sand is 885.25
First resistance is the 10 day moving average crossing at 901.16
Second resistance is the reaction high crossing at 929.00
First support is the 20 day moving average crossing at 881.90
Second support is the 25% retracement, this spring's rally crossing at 862.80
The June S&P 500 Index was up 2.70 points. at 885.70 as of 6:02 AM CST. Overnight action sets the stage for a higher opening by the June S&P 500 index when the day sessio
n begins later this morning.
Today’s Stock Market Club Trading Triangles
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