Stocks and Oil higher

Not much to add to the previous posts regarding stock indexes. The markets flipped back up today, leaving slight buying tails on the bars. In other words, there is still some slim evidence of price rejection on the lower prices in what should be a support area. And in still other words, the early follow-through to the Wednesday sell-off didn’t attract much selling and instead attracted some buying. If the price rejection is the correct scenario, prices should move out of this range. If prices accept these lower levels much longer the next move out of balance could be another leg down. So the action today was somewhat encouraging. Hopefully this won’t all fall to pieces on Friday. With the weekly oversold reading pointed out yesterday, and the bearish sentiment, the odds are still good for a counter-trend rally. It was also encouraging that the indexes didn’t fall apart with the big rise in oil. Crude bounced right off the same longer term moving average line as it has done a half dozen times since February. You can see a chart a few posts back.

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