This is another Monday when the S&P 500 Index e-mini futures (ES M1) are trading higher with WTI oil. Will high oil prices every hurt this stock market? Apparently not at this time as oil and the market end higher almost on a daily basis. This morning WTI oil is trading higher by 0.22 cents to $108.16 a barrel. Conflict in Libya is showing no signs of letting up and the rest of the region is still in turmoil. The popular United States Oil Fund (NYSE:USO) is trading higher by 0.07 cents to $43.25 a share.
The highly followed Shanghai Index (China) was closed last night for a holiday. The Nikkei Index(Japan) closed higher by 0.11 percent. The Hang Seng Index(Hong Kong) and the Sensex (India) both closed higher by 1.46 percent. The Asian markets may not have much effect on the markets in the United States this morning.
European Union data showed that PMI increased and this is a sign of continued inflation. However, the Euro continues to trade higher against the U.S. Dollar. The Currencyshares Euro Trust (NYSE:FXE) is trading 0.12 cents to $144.78 a share. Debt issues across the Euro-zone nations remain a major problem in Europe. Gold and silver are both trading higher this morning. Silver is now trading over $38.00 an ounce and is trading at a new 31 year high.
Monday’s are usually very light trading sessions. Often the light volume action will favor the upside. Therefore, traders will usually look to buy the dips intra-day. If volume picks up in this market it will generally favor downside action in the major stock indexes.