The U.S. stock indexes closed solidly higher today and near the session highs on short covering in a bear market. Stock traders may have also been today factoring into prices the expected interest rate reduction by the U.S. Federal Reserve on Wednesday afternoon. The stock index bears still have the solid near-
term technical advantage. There are still not yet any significant technical clues to suggest market bottoms are close at hand. As the weakening economic news continues to trickle into the marketplace, it will be harder and harder for the stock market bulls to get excited about sustaining an uptrend in prices. Weekly high closes or closes near the weekly highs in the stock index futures would be a first clue that market bottoms are in place.
December crude oil closed up $0.06 at $63.28 a barrel today. Prices closed near mid-range today. Losses were limited today by a rallying U.S. stock market. Crude oil bears still have the near-term technical advantage. Prices remain in a 3.5-month-old downtrend on the daily bar chart. Even with a spike in the markets today the bulls still have a lot of heavy lifting to do to turn the trends around.
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