Stronger Dollar Overnight Threatens Crude Oil Rally On Monday

July crude oil was lower overnight due to profit taking as it consolidates some of this spring's rally. Stochastics and the RSI are overbought and are turning bearish hinting that a short term top might be in or is near.

Day traders will continue to look for bullish set ups until they fail, and will until we close below the 20 day moving average crossing at 63.21. Which is 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.

Monday's pivot point, our line in the sand is 68.77

First resistance is last Friday's high crossing at 70.32
Second resistance is the 38% retracement level crossing at 82.38

First support is the 10 day moving average crossing at 66.53
Second support is the 20 day moving average crossing at 63.21

Today’s Stock Market Club Trading Triangles

The June Dollar was higher overnight and trading above the 20 day moving average crossing at 80.82. 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 80.82 would confirm that a short term low has been posted.

If June renews 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 overnight high crossing at 81.53
Second resistance is the reaction high crossing at 83.33

First support is the 10 day moving average crossing at 79.93
Second support is last Tuesday's low crossing at 78.37

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The S&P 500 was lower overnight due to profit taking as it consolidates some of this spring's rally. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near term.

Day traders will continue to look for bullish set ups until they fail. Monday's pivot point is 944 but day traders will be looking at 934.50 as a critical level of support to give serious market direction indication. If we break through 944 look for the next daily target of 957.50 as an exit point.

If the overnight strength in the dollar takes the market lower look for the first battle ground at 927.50, the trading hours only previous highs.

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 910.58 would confirm that a short term top has been posted.

Monday's pivot point, our line in the sand is 944

First resistance is last Friday's high crossing at 957.50
Second resistance is the 38% retracement level crossing at 1040.33

First support is the 10 day moving average crossing at 927.50
Second support is the 20 day moving average crossing at 910.58

The June S&P 500 Index was down 8.30 points. at 932.20 as of 6:00 AM CST. Overnight action sets the stage for a lower opening by the June S&P 500 index when the day session begins later this morning.