OIH hits resistance

After a rally the last two weeks, the Oil Service HOLDRs (OIH) is bumping up against resistance from the October trendline and the late November highs. Also notice that this bounce retraced around 62% of the decline from mid November to early December. With the ETF starting to stall, traders should watch for a break below 117 to reverse the two week uptrend. The bottom indicator shows OIH with West Texas Intermediate ($WTIC). Notice how closely these two track. Continued strength in the Dollar could weigh on oil.