British Petroleum (NYSE: BP) and Transocean (NYSE: RIG) have created a bit of a Lehman feel to the markets today. Ironically, oil prices are rocketing. BP has plunged to levels not seen since 1996! Whether or not BP is heading into bankruptcy is immaterial, because Mr. Market certainly thinks so.

As for the market as a whole, while Bernanke spoke to the House Committee, the S&P 500 clawed its way higher, with the emini rising from 1067 to nearly 1078, a 50% recovery of the entire decline from last Friday's peak at 1107.75 to yesterday's low at 1041.25. In and around the 1075 area, we should expect the index to encounter near-term technical selling pressure that stalls the upmove, if nothing else. The shallower the pullback, the more constructive and powerful the developing upmove, with 1070 and then 1064 as key intraday support for containing weakness ahead of a resumption in recovery strength -- if this upmove is real.

By Mike Paulenoff

Mike Paulenoff is author of MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.

© 2002-2010 MPTrader.com, an AdviceTrade publication. All rights reserved. Any publication, distribution, retransmission or reproduction of information or data contained on this Web site without written consent from MPTrader is prohibited. See our disclaimer.

Mike Paulenoff Archive

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.