Are energy stocks and crude oil about to take lead?

With gas prices hitting their lowest and crude oil stopping at around $60 BBL it looked like oil kept backing up then moving up a couple of points and heading down more, but recently I feel the mood in oil has changed.   Right now at least on technical indicators it is showing large white candles breaking 3-4 month downtrends in energy stocks.  Creating almost a perfect pit and moving back up with a strong candle trend.  If this is just a minor upward correction then energy stocks should fall hard again.  If they continue to push upwards then we could be seeing crude oil hit new highs with gas prices rising again.  Recently SouthWestern Energy (SWN) hit $33 up 8% including EOG Resources (EOG) at $67 up 3% and OIH Energy Trust (OIH) at $131 up 2% trading in between $122 and $130.  I have to say energy stocks have been very bullish the last week. 

What does all this mean?  Well if crude oil does continue to move back up with energy stocks its possible a good hit on the market could happen.  It’s still possible to hit DJIA $12,000 mark, but before hitting it again if energy creeps back up with a strong movement upward it could take away a lot of profits from other sectors.  Currently the price of gas is still way under inflation.  In other countries gas is very expensive.   The USA has been very fortunate to have kept gas prices at a minimum hike.  We would be looking at $5-7 a gallon.   Imagine that?  No one would buy an SUV, TRUCK, or big 8cyl luxury car.

I will update this post again once a few weeks have passed to see where oil is at.