Crude Oil Hinting That A Short Term Top May Be In

July crude oil was higher overnight due to short covering as it consolidates some of Wednesday's decline but remains below the 25% retracement of the 2008-2009 decline crossing at 68.49. Stochastics and the RSI are overbought and are turning bearish hinting that a short term top might be in or is near.

Closes below the 20 day moving average crossing at 62.22 are needed to confirm that a short term top has been posted.

If July extends this spring's rally, the 38% retracement of the 2008-2009 decline crossing at 82.38 is the next upside target.

Thursday's pivot point for crude oil is 66.62

First resistance is Tuesday's high crossing at 69.05
Second resistance is the 38% retracement level crossing at 82.38

First support is the 10 day moving average crossing at 65.04
Second support is the 20 day moving average crossing at 62.22

10:30 AM ET. May 29 EIA Natural Gas Inventories, in billion cubic feet

Total Working Gas in Storage (previous 2213)

Total Working Gas in Storage (Net Change) (previous +106)

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The June Dollar was steady to slightly lower overnight as it consolidates below the 62% retracement level of the July-March rally crossing at 79.80. Stochastics and the RSI are oversold and are turning bullish hinting that a short term low might be in or is near. Closes above the 20 day moving average crossing at 81.19 would confirm that a short term low has been posted.

If June extends the decline off April's high, the 75% retracement level of the aforementioned rally crossing at 77.55 is the next downside target.

First resistance is the 10 day moving average crossing at 79.73
Second resistance is the 20 day moving average crossing at 80.99

First support is Tuesday's low crossing at 78.37
Second support is the 75% retracement level crossing at 77.55

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July Henry natural gas was slightly higher overnight due to short covering as it consolidates some of Wednesday's decline but remains below the 10-day moving average crossing at 3.838. Stochastics and the RSI remain neutral to bullish signaling that sideways to higher prices are possible near term. Closes above Tuesday's high are needed to renew the rally off last week's low and would open the door for a possible test of May's high crossing at 4.690.

If July extends Wednesday's decline, last week's low crossing at 3.500 is the next downside target.

Thursday's pivot point for natural gas is 3.87

First resistance is the 20 day moving average crossing at 4.073
Second resistance is Tuesday's high crossing at 4.284

First support is Wednesday's low crossing at 3.708
Second support is last Tuesday's low crossing at 3.500

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The June S&P 500 index was higher overnight due to short covering as it consolidates some of Wednesday's decline. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near term.

It looks like day traders are neutral on the unemployment numbers and looking to play the bull side of the trade. Above the 930 pivot point first sellers should step in 936-939 possibly filling the gap all the way up to 954.75. If we get below the pivot point the target gap fill will be 917.

If June extends this spring's rally, the 38% retracement level of the 2008-2009 decline crossing at 1040.33 is the next upside target. Closes below the 20 day moving average crossing at 908.28 would confirm that a short term top has been posted.

Thursday's pivot point, out line in the sand is 930

First resistance is Tuesday's high crossing at 948.50
Second resistance is the 38% retracement level crossing at 1040.33

First support is the 20 day moving average crossing at 908.28
Second support is the reaction low crossing at 875.40

The June S&P 500 Index was up 3.90 points. at 935.60 as of 6:03 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.