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One Up, One Down

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Consumer confidence is up, according to the University of Michigan. Their consumer confidence number came in at 93.7, compared to 92.6. Stocks seem unaffected by the news, and bond yields have ticked up slightly.

The Labor Department's producer price index dropped 0.4% in June, the biggest drop since February 1999. This is also the first time the index fell since last August. The drop was attributed to falling oil prices.

Oil Services Index Daily Chart

Oil service stocks continue to get drilled for the seventh straight week. The index is trying to stop bleeding, up 0.83%, but it might need a tourniquet. Is this group oversold? Sure. Can it stay oversold for an extended period of time? Sure. If we go all the way back to January of 1999 to attach a retracement bracket to 44.59, 82.6 looks like the next downside target. OSX has tried fervently the past two days to prevent that from happening, but each rally attempt has met resistance at $94.4.

Jeff Canavan
Assistant Analyst
www.premierinvestor.net

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