Tuesday's stock market action was interesting on several fronts. In the morning, it appeared that the bulls were about to recover their lost momentum mojo in response to a second consecutive monthly surge in Consumer Confidence. But then the politicians started making headlines about new sanctions for Russia - and the bottom line is, yes, the algos noticed each and every one of those headlines.
At about 11:00 am eastern time, the major indices had moved to the high of the day and the S&P 500 had retraced all of the prior two day's declines. Things were looking up. After all, when consumers are in a good mood, they tend to spend more time at the malls and/or online - buying stuff. In short, the strong improvement in Consumer Confidence meant the argument could be made that the economy might be able to perform above expectations going forward.
By Richard Rittorno
The spot price for WTI Crude Oil (NYSEARCA:USO) futures tumbled Tuesday to a two week low with an intraday low of $100.37 a barrel. Market participants are in a holding pattern ahead of the Wednesday's weekly supply data report scheduled for 10:30 am Wednesday.
The price of WTI has been trading within an acceding wedge until breaking out below the wedge this morning. Support on the daily chart is found at July 15 low of $99.01.
Expectations for the Energy Information Administration report are for 400k to 1 million drop in storage supplies. Anything less will be seen as bearish demand for the largest oil consumer.
Speculation on the street is for a significant drop in storage after extremely economic bullish news concerning U.S. consumer. This morning the July Consumer Confidence report indicated an increase of consumer confidence with a reading of 90.9 compare to last month's