Oil Closes At All-Time High, Markets Pull Back

DJIA - 104.79, -0.82% SP500 - 12.23, -0.88% NASDAQ Comp. - 31.10, -1.29% Russell 2000 - 14.29, -1.99% Oil 118.07 new closing high The DJIA pulled back closing near the mid-section (S-1) of Friday’s large white candle. This is at the area of former resistance which theoretically should now be support. The Nasdaq 100 gapped up on Friday, so its chart does not show a large white candle, also pulled back today and is sitting on top of the gap and the former resistance area. The S&P closed deep into Friday’s large white candle and did not break the low of the high day. The Nasdaq Composite closed into its Friday gap and above the bottom of the gap. The Russell 2000 did close below the low of the high day which was Friday. The Russell continues to be relatively the weakest of these five indices. Oil hitting all-time highs is putting pressure on the market and may cause the market to move down further from resistance if it continues to rise. OIH was down 2.74, XLE up 4 cents, USO up 70 cents, XOM up 17 cents, COP up 55 cents, and APA up 45 cents. Oil ETFs and stocks appear to be experiencing short term profit taking as they mostly consolidate in areas of resistance. While it would be appropriate to state the Russell 2000 short-term market trend is down, the other indices are still inside of Friday’s price action so they are neutral. We will shift the short-term trend status if price moves below Friday’s price range. AAPL earnings will come after the close tomorrow (Wednesday) rolled over and closed down 7.96 breaking the low of the high day. It did rally up 1.76 in after-market trading. Trade accordingly. Continue to watch the earnings release dates on stocks you are trading and the dates of stocks we listed from Monday’s post and trade accordingly. Today’s Action Moving Up FSLR, POT, MTL, SCHN, FWLT, MOS, CLF, EBAY, JASO, MER Moving Down UAUA, BIDU, DECK, PCLN, STRA, CF, GRMN, MON, CELG, MEE, IBM GS, NKE, AMZN, LEH, EXPE, AGU Intermediate Term Market Trend: Neutral Short Term Market Trend: Neutral