Market Analysis for Mar 8th, 2005
Yesterday, April Crude retested its prior pullback low at $52.90, which contained the minor selling
pressure- and as you can see below- turned oil prices to the upside with power- enough to
approach last Thurs. high at $53.20. My work argues for additional strength into new high
ground that approches $59-$60/bbl. As for the e-SPH, notice that while oil was correcting, the
index was creating yest.'s high, which has since morphed into a minor top to the upleg from last
Wed.'s low at 1204- to 1229.75. Although I do not expect the e-SPH to break below
1215-1214 during THIS minor pullback, if oil should accelerate
above $55.20 sooner rather than later, then the
e-SPH might be considerably more vulnerable to
a much nastier sell-off then I currently envision.
MJP 03/08/05 11:35 AM ET ($54.60) (1222.50)
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