By Nicholas Santiago on July 8th, 2010 3:49pm Eastern Time
Yesterday the major stock indexes all rallied sharply higher causing a major short squeeze into the close. Today the large cap energy stocks are inching higher helping the markets gain for a second consecutive trading session. This is a slight change of character from the usual 3:00 pm sell off that we have seen over the past two months in the major stock indexes.
Exxon Mobil Corp (NYSE:XOM) is the leading energy stock in the market. This stock also has the largest market cap in the stock market at $275 billion. Therefore, when this stock trades higher the market will often follow it's lead. Today Exxon Mobil Corp is trading higher by 0.19 to $58.60.
Chevron Corp (NYSE:CVX) is another leading energy stock and a major Dow Jones Industrial Average component. Today Chevron Corp is trading higher by 0.71 to $70.17. This stock does have daily chart resistance around the $71.50 area and more around $73.00. When Chevron Corp and Exxon Mobil Corp trade higher together the entire energy sector will usually trade higher.
Chesapeake Energy Corp (NYSE:CHK) is a leading natural gas stock that sold off sharply from late June. The stock is bouncing from the recent lows made three trading days ago. Chesapeake Energy Corp will have daily chart resistance around the $22.40 and $23.00 levels.
When the energy stocks move higher it is usually a sign that the stock market indexes are inflating higher. Most of the stocks in the energy sector have been extremely oversold and a bounce was due. As long as the energy stocks continue to climb the markets should hold up and trade off the lows. Remember Exxon Mobil Corp is a very important stock to follow and a stock market barometer.
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