Crude Oil Sets New Six Month High

July crude oil was higher overnight as it extends this spring's rally. Stochastics and the RSI are overbought, diverging but are neutral to bullish signaling that sideways to higher prices are possible near term. As I write we are trading above 1st resistance at a new six month high, a 40% increase just this year.

Most professional traders will tell you that there is no reason for us to be trading crude at these levels but yet they are buying the dips every chance we get.

I am not sure it matters but traders will be watching the OPEC gathering this week where most traders expect OPEC leaders to hold production steady.

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 58.53 are needed to confirm that a short term top has been posted.

Wednesday's pivot point, our line in the sand is 61.54

First resistance is the overnight high crossing at 63.45
Second resistance is the 25% retracement level crossing at 68.49

First support is Tuesday's low crossing at 59.53
Second support is the 20 day moving average crossing at 58.52

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The June Dollar was higher overnight due to short covering as it consolidated above the 62% retracement level of the July-March rally crossing at 79.80. Stochastics and the RSI are oversold but remain neutral to bearish signaling that additional weakness is possible near term.

If June extends the decline off April's high, the 62% retracement level of the aforementioned rally crossing at 79.80 is the next downside target. Closes above the 20 day moving average crossing at 82.46 would confirm that a short term low has been posted.

First resistance is the 10 day moving average crossing at 81.27
Second resistance is the 20 day moving average crossing at 82.46

First support is last Friday's low crossing at 79.90
Second support is the 62% retracement level crossing at 79.80

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The June S&P 500 index was higher overnight as it extends Tuesday's rally. Stochastics and the RSI are turning neutral signaling that sideways trading is possible near term.

For today I believe most day traders are seeing bullish set ups easily taking us from above our pivot point to 915. Beyond that we do have an unfilled gap at 924.75 that the bulls could have in their sights if buyers step into this market.

If June extends this week's rally, last week's high crossing at 923.20 then this month's high crossing at 929.00 are the next upside targets. Closes below the reaction low crossing at 875.40 would confirm that a short term top has been posted.

Wednesday's pivot point, our line in the sand is 899

First resistance is last week's high crossing at 923.20
Second resistance is this month's high crossing at 929.00

First support is Tuesday's low crossing at 877.00
Second support is last Monday's low crossing at 875.40

The June S&P 500 Index was up 1.70 points. at 910.40 as of 6:01 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.