Please enable javascript in your browser to view this site!

WTI Crude rally helps bring S&P back into prior range

S&P recaptured 2035 and bounced into this range again, so area near 2052-5 important on the upside to sell into, and trend arguably getting worse on recent break of support and lower high on the recent bounce

S&P recaptured 2035 and bounced into this range again, so area near 2052-5 important on the upside to sell into, and trend arguably getting worse on recent break of support and lower high on the recent bounce

Trend looks to be turning DOWN, given yesterday's breakdown under 2035, but the act of regaining this area by the close and now Crude climbing back over 38.30 area from Wednesday has caused some acceleration higher in WTI and S&P is following suit.  Given the breakdown of Europe in the last couple weeks along with Financials and Transports hitting new relative lows to the market, USDJPY, TNX, Bund yields moving lower,, its difficult not to think that S&P should begin at least a minor correction, but much will depend on prices turning back lower and demonstrating this weakness.  For now, the movement in crude has helped to prop prices up premkt and S&P is back into this range.   Key support lies at 2040 SPX, 2035 SPm6, while yesterday's intra-day lows lie at 2026.  and resistance at 2055-SP.  Look to sell into premkt gains between 2052-5.   Good risk/reward longs Technically:  RAI, CAG, UA, SBUX, AVGO, NKE, VNTV, COG, MPC.  Some shorts to consider selling into on early strength today:   FCX, KMX, FFIV, URBN, SCHW, ETFC, JWN..... with other technically attractive shorts:  SPLK, RL, FOSL, HOG, P, CROX, CF

Certainly a good move for WTI this morning in getting back up above this week's highs and retracing 50% of the prior downtrend over the last couple weeks

Certainly a good move for WTI this morning in getting back up above this week's highs and retracing 50% of the prior downtrend over the last couple weeks