Gasoline Supply: A Real-Time Metric

The S&P 500 is trading above its 200-day and 50-day moving averages. This would indicate that further strength is a strong possibility. Clearly the market likes what it has seen thus far into earnings season. Add to this mix the improvement seen in manufacturing data this morning, and the bulls have a lot of ammunition to drive not only oil, but equities higher as well in the near term.

I do feel however, that crude oil will most likely remain range bound for some time to come barring any geopolitical events and outside forces of that nature. I think that fundamentally the market can justify prices in the $60 per barrel range, but any runs considerably higher at this point would be premature and unsustainable.

Although the economy may in fact be on the mend, it is likely to be a long, drawn-out recovery. This economic reality was reiterated in today's Fed minutes release. Likewise with the S&P, I feel that although we may see additional gains in the short term, I think any moves toward the 1000 level will be met with strong resistance and will likely fail.

Being an option seller, I think that both of these markets will possibly present some good call-selling opportunities in the near future.