Stocks Inched Up As Oil Crisis Eased

FUNDAMENTAL ANALYSIS
Crude oil hit an intraday low of below $64 today following the release of the 15 british soldiers. Even though oil closed back up slightly above $64 due to an unexpected drop in crude inventory, that little episode has helped to ease a lot of crude related worries and helped the market inch up a little. The Dow was up by 19.75 points and the Nasdaq composite was up by 8.36 points which was a far cry from yesterday's move. Market action has also been sluggish whole day with completely no sign of any momentum being carried forward from yesterday. Indeed, as our technical analysis has revealed yesterday, there wasn't enough volume support for yesterday's move and it isn't surprising to see those buying interest drying up by today. Good Friday is at our doorsteps now and I suspect we should see a low volume, slow day tomorrow as investors prepare for the long weekend.

TECHNICAL ANALYSIS
A sideways day today. To me, a sideways day is when the index close within the range of the previous day. Today, the Dow closed neatly within yesterday's top range as buying interest dissipitates. Again, volume was low and uninspiring and major indices remains short term overbought. There just didn't look like there are any enthusiasm or energy left in the market to go any further up. A research report once stated that there is a better than 66% chance that the market will drop within the next 5 days following a 5 days gain. Is this where it is going to happen? For now, both the bulls and bears continue to co-exist in this market with slight supremacy over each other from time to time.


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