GLOBAL STOCKS CONTINUE RALLY -- OIL SERVICE STOCKS LEAD MARKET HIGHER ON RISING OIL -- S&P 500 ATTEMPTING NEW HIGH -- SMALL CAPS ARE ALSO LEADING
OIL SERVICE STOCKS SURGE ... Strong buying in energy shares is helping lead global stocks higher. That's especially true of oil service stocks. Chart 1 shows the VanEck Vectors Oil Services ETF (OIH) surging near 7% today. Its relative strength ratio (top of chart) is surging as well. Crude oil prices are trading more than a dollar higher today and are over $49. Brent crude is trading over $50. Commodity prices in general are continuing their rally that started on Friday with the plunging dollar. Foreign stocks tied to commodities are also helping lead the global rally.
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Chart 1
OIH LEADERS ... The next three charts show some of the day's biggest OIH gainers. Chart 2 shows Helmerich & Payne (HP) surging nearly 10% and nearing a new high for the year. Chart 3 shows National Oilwell Varco (NOV) surging above its 200-day moving average. Chart 4 shows Baker Hughes (BHI) doing the same. Energy shares are the day's strongest market sector. Material stocks continue to rise with commodities as well. Emerging markets are also rising with commodities.
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Chart 2
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Chart 3
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Chart 4
S&P 500 NEARS NEW HIGH -- SMALL CAPS LEAD... Chart 5 shows the S&P 500 Large Cap Index trying to clear its April intra-day high at 2111. A new high could be imminent. Small caps are doing even better. Chart 6 shows the Russell 2000 Small Cap Index decisively clearing its April high. Small caps are up twice as much as large caps today. That's a good sign for both. The RUT/SPX ratio (top of Chart 6) has surged to a new five month high. All sectors are in the black today except for utilities. Biotechs are up 2.3% to lead the healthcare sector higher.
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Chart 5
