STOCKS ARE BEING LED HIGHER BY ENERGY AND FINANCIALS -- OIL SERVICES ETF NEARS SUMMER HIGH -- HALLIBURTON AND SCHLUMBERGER ACHIEVE BULLISH BREAKOUTS -- SO DO COMERICA AND REGIONS FINANCIAL WHICH ARE LEADING BANKS HIGHER
CRUDE OIL HITS FOUR-MONTH HIGH... The price of oil continues to rise. Chart 1 shows the United Stated Oil Fund (USO) climbing nearly 3% to reach the highest level in nearly four months. That's giving a big boost to energy shares which are leading the rest of the market higher. Oil service stocks are the day's biggest energy gainers. Chart 2 shows the VanEck Vectors Oil Services ETF (OIH) nearing a test of its June peak. An upside penetration would complete a bottoming pattern in the OIH. Two of the biggest OIH stocks are already achieving bullish breakouts.
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Chart 1
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Chart 2
HALLIBURTON AND SCHLUMBERGER SCORE BULLISH BREAKOUTS ... It's normally a good sign for an industry ETF like the OIH when it's two biggest stocks are achieving bullish breakouts. Which is just what's happening. Chart 3 shows Halliburton (HAL) climbing to the highest level in nearly two years. Chart 4 shows Schlumberger (SLB) breaking out to a new fifteen-month high. The stock market is taking that as a positive sign. So are banks.
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Chart 3
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Chart 4
COMERICA AND REGIONS FINANCIAL LEAD BANKS HIGHER... Strong bank stocks are helping make financials one of the day's strongest groups. Two stocks in particular are having excellent chart days. Chart 5 shows Comerica (CMA) surging to the highest level since summer 2015. A close above that 2015 would put the bank stock at a record high. Chart 6 shows Regions Financial (RF) moving above its 2015 high. Regional banks are having a strong day. There's some logic to gains in banks and energy stocks. Rising energy prices increase inflation pressure which has been boosting bond yields. Rising bond yields are good for banks.
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Chart 5
