Craig Johnson’s

Financial Markets Summary

Thursday, March 9, 2017

  • Oil dropped below the trading range low for 2017, which had been near $50.75-51.00 a barrel. The price reached a low yesterday at $50.06 before bouncing a bit and closing near $50.30 a barrel. The $50.06 low was the lowest oil has been since the middle of December.
  • The decline in oil seems to be in reaction to a large inventory build and questions about how successful the OPEC oil production cuts have really been or will be.  Current support resides near $48.75 a barrel. For those bullish on oil, holding support becomes quite important as a further decline reverses the short term up trend. The intermediate and long term trends are down.
  • The stock market as represented by the S&P 500 has dropped four of the past five days since last Wednesday’s surge higher. The pullback from intraday high to intraday low has only been 1.70% or quite mild as buyers have been quick to step up as soon as selling takes place.
  • The Russell 2000, which is representative of the small capitalization universe, has been the lagging index during 2017’s rally. The index has been in a long sideways consolidation since early December. A return to strength for this index would be a huge positive for the stock market.
  • Gold extended its losing streak to seven consecutive days after hitting resistance. Gold closed yesterday near $1208 an ounce.



Sources:,,, Dow Jones News, Financial Times,, Investor's Business Daily,,, Thomson Reuters/First Call, U.S. Dept of Treasury, and individual company web sites and press releases.

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