This morning the price of oil is over $71 per barrel. According to some analysts, the primary driver appears to be the weakness of the US Dollar and concerns over inflation. The US Department of Energy releases oil inventory data at 10:30 am this morning. The market indices were essentially flat as a pancake yesterday, ending with little change.
A factor that is impacting the positive sentiment maybe that investors believe that the worst is over. Many US banks are strong enough to pay the TARP money back. Many economic reports are showing numbers that are better than expected. The caveat to the economic numbers is that they are not really improving, but rather, not getting worse. The Canadian banks have notched a rare victory against the powerful insurance broker lobby, and will now be allowed to market and sell insurance via their websites.
Futures this morning are positive and the DAX is positive, indicating a positive open. The market bias indicators remain neutral and the market condition scans are a weak bias to the upside. This indicates once again choppy random movement.
| Index | Change | %Change | Level | Phase |
| TSX | -1.26 | -0.01% | 10547.86 | Bullish |
| DJIA | -1.43 | -0.02% | 8763.06 | Recovery |
| Nasdaq | +17.73 | +0.96% | 1860.13 | Bullish |
| SP 500 | +3.29 | +0.35% | 942.43 | Accumulation |
| Russell 2000 | +3.14 | +0.60% | 527.93 | Accumulation |
| NYSE | +33.01 | +0.54% | 6101.57 | Accumulation |
Source: Telechart
Short Term market outlook:
Bias: Scans showing a neutral to positive bias
Energy: weak
Primary Trend: sideways
| Sector | Phase |
| Consumer Staples | Recovery |
| Healthcare | Recovery |
| Technology | Bullish |
| Utilities | Recovery |
| Energy | Accumulation |
| Financials | Recovery |
| Industrials | Recovery |
| Materials | Recovery |
| Consumer Discretionary | Recovery |
Source: Telechart
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