OIL SERVICE STOCKS LEAD S&P 500 RALLY
OSX LEADS STRONG ENERGY SECTOR... In Tuesday morning trading, energy is the top sector in a rising market. Oil service stocks are the day's top energy group. Chart 1 shows the Oil Service Index moving up to challenge its early March high. Its relative strength line is also nearing an upside breakout. Two of the top gainers are Transocean and Baker Hughes.
Chart 1
BHI AND RIG ARE ENERGY LEADERS... Baker Hughes and Transocean are among the top percentage gainers in the energy group and the S&P 500. BHI is the stronger of the two stocks and is nearing a test of its early March high. Transocean is just now gapping over its 50-day moving average. That means it's starting to play catch-up to the oil service group. Its relative strength line shows that RIG has been an OSX laggard up to now. The RIG/OSX ratio is just starting to turn up.
Chart 2
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S&P 500 IS TRADING HIGHER... Consumer confidence rose during April which is giving the stock market a boost this morning. The S&P 500 is trading higher after finding support at its 50-day moving average yesterday. In addition to the two oil stocks, two other S&P 500 leaders this morning at Pulte and RJ Reynolds Tobacco.
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