Crude Oil Rally Looks To Continue As U.S. Dollar Weakens

June crude oil was higher overnight as it extends last week's rally above March's high crossing at 56.10. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near term.

If June extends last week's rally, the reaction high crossing at 65.00 is the next upside target. Closes below the 20 day moving average crossing at 52.82 are needed to confirm that a short term top has been posted.

The current rally in crude oil has been fueled by the falling U.S. Dollar and as it rebounds for a couple of days most professional traders will be buying the dips in crude oil.

Tuesday's pivot point, our line in the sand is 57.84

First resistance is the overnight high crossing at 59.68.
Second resistance is the reaction high crossing at 65.00.

First support is the 10 day moving average crossing at 55.29.
Second support is the 20 day moving average crossing at 52.82.

The weekly pivot point is 56.65

Today’s Stock Market Club Trading Triangles

The June Dollar was lower overnight as it extends last Friday's decline below 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 20 day moving average crossing at 84.90 would temper the near term bearish outlook in the market.

First resistance is the 10 day moving average crossing at 83.86.
Second resistance is the 20 day moving average crossing at 84.90.

First support is the overnight low crossing at 82.38.
Second support is the 87% retracement level crossing at 81.49.

Today’s Stock Market Club Trading Triangles

The June S&P 500 index was steady to slightly higher overnight due to short covering as it consolidates some of Monday's decline. Stochastics and the RSI are overbought and are turning bearish hinting that a short term top might be in or is near.

While most professional traders look for a break through 898 to spell trouble for the bulls, closes below the 20 day moving average crossing at 875.36 are needed to confirm that a short term top has been posted.

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

Tuesday's daily pivot point, our line in the sand is 913.25

First resistance is last Thursday's high crossing at 919.50
Second resistance is January's high crossing at 930

First support is the 10 day moving average crossing at 902.75
Second support is the 20 day moving average crossing at 895.75

Watch the converging of the weekly pivot at 910.75, the daily pivot of 913.25 and monthly resistance of 912.50.

The June S&P 500 Index was up 1.00 points. at 910.00 as of 5:56 AM CST. Overnight action sets the stage for a steady to higher opening by the June S&P 500 index but that could be at risk as trade deficit numbers have come in worse than expected.