Oil Breaks $66, Lifts Nasdaq

FUNDAMENTAL ANALYSIS
All eyes were on crude oil prices today (maybe because there was no major economic release todayto focus on?) as oil surged 2.1% to $66.27/bbl, putting some last minute pressure on the Dow. Energy stocks, however, got a boost from the higher crude price and lifts the Nasdaq Composite by over 20 points today. It is no surprise that crude oil prices have been rising all summer, that is why we do not see a crazy rush out of the market at all. Looking ahead, tomorrow's crude inventory might be the deciding factor as to whether crude would move higher or stage a little retreat. My bet is that inventory might be lower than expected due to higher summer consumption. Well, numbers always have a way of surprising us and I would not put money on it until it comes to be.

TECHNICAL ANALYSIS
The Dow traded sideways today as it prepares for yet another step in the staircase formation. The Nasdaq composite seems to also be jumping in on the bullish bandwagon at last and that might give an overall boost to the rest of the indices, that is why we should see more gains from the Dow soon. Well, no surprises today with nothing out of the ordinary. Market remains bullish.

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