Crude Oil Lower On Demand Concerns and Jobless Claims

June crude oil was lower due to profit taking overnight as it consolidates some of the rally off April's low. Stochastics and the RSI are overbought and are turning bearish signaling that a short term top might be in or is near.

Closes below the 20 day moving average crossing at 53.35 are needed to confirm that a short term top has been posted.

Crude oil is struggling against a slightly higher dollar and worse then expected jobless claims and unemployment data.

If June renews this spring's rally, the reaction high crossing at 65.00 is the next upside target.

Thursday's pivot point, our line in the sand is 58.34

First resistance is Tuesday's high crossing at 60.08
Second resistance is the reaction high crossing at 65.00

First support is the 10 day moving average crossing at 56.54
Second support is the 20 day moving average crossing at 53.35

10:30 AM ET. May 8

EIA Natl Gas Inventories, in billion cubic feet

Total Working Gas in Storage (previous 1918)

Total Working Gas in Storage (Net Change) (previous +95)

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The June Dollar was higher overnight due to short covering as it consolidates around the 75% retracement level of the December-March rally crossing at 827.50. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near term.

If June extends the decline off April's high, the 87% retracement level of the December-March rally crossing at 81.49 is the next downside target. Closes above the 10 day moving average crossing at 83.44 would temper the near term bearish outlook in the market.

First resistance is the 10 day moving average crossing at 83.44.
Second resistance is the 20 day moving average crossing at 84.62.

First support is 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 lower overnight and tested support marked by the 20 day moving average crossing at 878.09. The pre market trading session is trying to digest worse then expected jobless and unemployment numbers so it is no surprise that Stochastics and the RSI have turned bearish signaling that sideways to lower prices are possible near term.

We are looking at a trading range of 880 - 887 and traders are looking closely at the 50% retracement level of 875.75 to go long.

Closes below the 20 day moving average crossing at 878.09 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 901.50 would temper the near term bearish outlook in the market.

Thursday's pivot point, our line in the sand is 892.25

First resistance is the 10 day moving average crossing at 904.50
Second resistance is last Thursday's high crossing at 924

First support is the 20 day moving average crossing at 873.75
Second support is the 25% retracement, this spring's rally crossing at 861.50

First weekly support is 891.50

The June S&P 500 Index was down 2.00 points. at 883.30 as of 6:06 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.


Today’s Stock Market Club Trading Triangles



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