What Fueled The Late-Day Rally

August 7, 2002
Paul Letourneau

The Sept S&P 500 futures
(
SPU2 |
Quote |
Chart |
News |
PowerRating) opened up with a flare and looked like the moves would continue to
the upside. Then the rally fizzled and dropped off in a sideways motion to hit
the lows of the day at 854. Then at around 2:45 PM EST the futures began to
rally and sizzled higher all the way to the end to close at the highs of the
session. The S&Ps closed at 876.50 up 15.50.

The Nasdaq 100
(
NDU2 |
Quote |
Chart |
News |
PowerRating) followed a similar pattern as the S&Ps, however the NDU2 did not
enjoy the strong robust rally at the end of the session. The Nasdaq 100 futures
closed at 919 up 12 points. Both the S&P 500 and Nasdaq 100 futures are showing
signs of a 1,2,3 bottom on the daily chart.

Crude-oil futures dropped off in today’s session.
According to the Wall Street Journal, Mexico’s oil minister said today
that crude-oil demand wasn’t recovering and that inventories are “very healthy”
— supporting other nations’ calls for a lift on OPEC’s quota cap. Mexico is not
a member of OPEC but agreed to cut its production earlier in the year. There is
driving speculation that the Organization of Petroleum Exporting Countries could
have trouble keeping its members abiding by quota caps.

The American Petroleum Institute showed a crude
draw of 3.874 million barrels in the week ended Aug. 2, a gasoline build of
0.194 million barrels and a distillate build of 1.671 million barrels.

The U.S. Department of Energy showed a crude draw of 2.1 million barrels, a
gasoline build of 0.9 million barrels and a distillate build of 0.7 million
barrels.

What Fueled The Late-Day Rally

BUY THE FEAR, SELL THE GREED

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