Mike's Mid Day Minute is available to members on Monday, Wednesday & Friday evenings, with one article per week available to non-members. Members please login and see "Mike's Mid Day Minute" in the navigation menu towards the top of the page.
Surging Crude Oil Weakens Equities
By Mike Paulenoff, www.MPTrader.com
In just about the past 24 hours, crude oil prices have rocketed from a corrective low of $110.30 to this AM's intraday high at $116.18 so far- just a 5% gain, that's all! So far, the rally in oil, an ETF of which is the US Oil Trust (AMEX: USO), has recovered about 60% of the prior decline from the all-time high at $119.93 to yest.'s low at $110.30. If June crude hurdles and sustains above $116.20, then I will be expecting a retest of $119.93. Meanwhile, as oil prices climb vertically, the e-SPM appears to have entered a correction of the upleg from Wed.'s pullback low at 1382.25 to this AM's high at 1427.00. A break below 1408 will argue for additional weakness into the 1400-1398 target zone.
