Stock Market Mixed As Crude Nears $62

FUNDAMENTAL ANALYSIS
After all that excitment generated by the great stock market surge on Wednesday, stock market was mixed today as oil breaks above the $61 psychological level and nears $62 a barrel. Even though this move caused a surge in the oil services sector, it was clearly offset by a drop in the rest of the sectors, resulting in a mixed market today. Somehow, somewhere along this rise and fall in the stock market, many analysts have forgotten that crude prices is very closely linked to market performance since the rally begun in July 2006. In fact, it was nearly a perfect inverse of oil prices. Even a drop in jobless claims failed to inject any clear follow up on the optimism of Wednesday. With the summer high gas demand season looming ahead, crude prices will definitely have more upside to come. Already, we are seeing petrol prices rise even ahead of crude prices yesterday.

(I will not post all that prices here in this blog. If you wish to see sector movements, indices movement, Cramer's takes and put call ratios all on one page, please visit and bookmark my Option Trader HQ. )

TECHNICAL ANALYSIS
Markets was mixed today as I expected yesterday. A couple of days of sideways or mixed movement after such a strong surge as Wednesday's is completely the norm. This is because after such a strong surge, investors would again want to sit on the sidelines to see if it has strength to move further before committing into it while those who were in it would want to take some profits off the table. Again, the 12500 level remains the next major hurdle before the baby bull can grow up into a full grown adult bull.



Technical Chart By Worden Brothers TC2007 Charting Software
Voted Best Software By Readers Of Stocks & Commodity Magazine Since 1993!