Oil Prices Fall, Stock Prices Rise

DJIA + 24.43, +0.19% SP500 + 3.64, +0.26% NASDAQ Comp. + 16.31, +0.67% Russell 2000 + 5.09, +0.81% Oil prices fell $2.36 to close at $130.81. Stocks prices rallied today and the broad indices remained below the R1 level of yesterday’s large black candle. The DJIA also remained below its 30 and 200 DMA. The S&P stayed at its 30 DMA and below its 200 DMA. The Nasdaq Composite and Russell 2000 both stayed below their 200 DMA and above their 30 MDMA. Numerous bullish haramis, piercing lines and bull flag patterns existed on both the indices and individual stocks charts today, suggesting the probability that prices will bounce higher. It is important to watch for a break through the R1 & R2 levels.

Markets will be closed on Monday, May 25 in observance of Memorial Day. Expect trading volume to be lower than normal on Friday in front of the 3-day weekend.

Today’s Action Moving Up: POT, CF, STRA, MOS, DECK, SCHN, MON, CELG, IBM, CLF, AMZN Moving Down: BIDU, DRYS, FSLR, X, MTL, V, MA, USO, RIMM, NUE, GS, AAPL, LEH, JASO, FWLT and BTU Intermediate Term Market Trend: Up Short Term Market Trend: Down