Crude Oil Overbought, Signals Still Turning Bullish

July crude oil was higher overnight as it extends this week's rally. Stochastics and the RSI are overbought, diverging but are turning bullish signaling that sideways to higher prices are possible near term.

If July extends this spring's rally, the 25% retracement of the 2008-2009 decline crossing at 68.49 is the next upside target. Closes below the 20 day moving average crossing at 56.37 are needed to confirm that a short term top has been posted.

Wednesday's pivot point, our line in the sand is 60.12

First resistance is Tuesday's high crossing at 60.99
Second resistance is the 25% retracement level crossing at 68.49

First support is last Friday's low crossing at 56.74
Second support is the 20 day moving average crossing at 54.37

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The June Dollar was steady to slightly higher overnight as it consolidated some of Tuesday's decline. Stochastics and the RSI are oversold, diverging but turning bearish again signaling that additional weakness is 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 20 day moving average crossing at 83.77 would confirm that a short term low has been posted.

First resistance is Monday's high crossing at 83.33
Second resistance is the 20 day moving average crossing at 83.77

First support is Tuesday's low crossing at 81.97
Second support is the 87% retracement level crossing at 81.49

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The June S&P 500 index was higher overnight as it consolidates above the 10 day moving average crossing at 902.68. Stochastics and the RSI are turning bullish signaling that sideways to higher prices are possible near term.

If June extends this week's rally, this month's high crossing at 929.00 is the next upside target. Closes below Monday's low crossing at 875.40 would confirm that a short term top has been posted.

I look for the day trading bulls to flood in on any pull back into the 895-899 range, selling into the pivot point before the end of the day,

Wednesday's pivot point, our line in the sand is 909

First resistance is Tuesday's high crossing at 915.80
Second resistance is this month's high crossing at 929.00

First support is the 10 day moving average crossing at 902.68
Second support is Monday's low crossing at 875.40

The June S&P 500 Index was up 2.50 points. at 909.00 as of 5:55 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.

10:30 AM Eastern Time

US Energy Dept Oil Inventories

Crude Oil Stocks (previous 370.6M)

Crude Oil Stocks (Net Change) (expected -700K; previous -4.7%)

Gasoline Stocks (previous 208.3M)

Gasoline Stocks (Net Change) (expected -1.2M; previous -4.1%)

Distillate Stocks (previous 147.5M)

Distillate Stocks (Net Change) (expected 700K; previous +1%)

Refinery Usage (expected 84%; previous 83.7%)