The Dow Flat On Crude Oil Spike

FUNDAMENTAL ANALYSIS
The Dow closed flat today as a volatile but bullish inclined session was put back to the neutral line by a spike in crude oil and petroleum prices. The summer heat caused a surge in power utilisation that resulted in an unexpectedly large drop in crude inventory. This drop pushed the crude oil price to above $70 intraday. This surge in crude price put significant pressure on the stock market and erased the optimism generated by a fairly optimistic Fed report. Seriously, the week so far hasn't turned out so bad and the releases so far are fairly optimistic. Tomorrow's Chicago PMI is the last of the heavy weights this week and I believe that will be the final hurdle that will release the bulls.

TECHNICAL ANALYSIS
The Dow ended in a sideways day today. The internals still looks great at the multitude of ETFs that I spotted with reversal signals continue to be valid. All other technical indications remain the same as yesterday with the Dow still nicely poised for a rebound from its short term oversold position. How far this potential rally will go is really the question. I do not expect a big move yet as the weekly charts still look way too high. I would expect the Dow to be range bound until the weekly 30MA catches up.


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