Light Trading Volume Expected For May Day Holiday

June crude oil was steady to slightly lower overnight as it consolidates above resistance marked by the 10 day moving average crossing at 50.01.

The commodities markets will be effected by possible light volume on Friday due to the May Day Holiday being celebrated in much of Europe.

Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term. Closes above the 20 day moving average crossing at 51.43 are needed to confirm that a short term low has been posted.

If June renews this month's decline, the reaction low crossing at 45.11 is the next downside target.

Friday's pivot point, our line in the sand is 51.01

First resistance is Thursday's high crossing at 51.94.
Second resistance is the reaction high crossing at 53.21.

First support is Monday's low crossing at 48.01.
Second support is last Tuesday's low crossing at 46.72.

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The June S&P 500 index was higher overnight as it extends the rally off March's low. Stochastics and the RSI are diverging but are neutral to bullish signaling that sideways to higher prices are possible near term.

That being said we see this as a swing day, a great opportunity to go short if we touch the high's of Wednesday. This market is trying to roll over for the bears.

If June extends the rally off March's low, January's high crossing at 937.00 is the next upside target. Closes below the 20 day moving average crossing at 849.26 are needed to confirm that a short term top has been posted.

Friday's pivot point, our line in the sand is 873.75

First resistance is Thursday's high crossing at 887.10.
Second resistance is January's high crossing at 937.00.

First support is the 10 day moving average crossing at 855.41.
Second support is the 20 day moving average crossing at 849.26.

The June S&P 500 Index was up 3.70 points. at 873.70 as of 5:59 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.

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The June Dollar was lower overnight as it extends this week's decline. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near term.

If June extends this week's decline, March's low crossing at 83.14 is the next downside target. Closes above the 10 day moving average crossing at 85.63 would temper the near term bearish outlook in the market.

First resistance is the 20 day moving average crossing at 85.52.
Second resistance is the 10 day moving average crossing at 85.63.

First support is Thursday's low crossing at 84.03.
Second support is March's low crossing at 83.14.



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