By | November 11 2009 11:26 AM

Crude futures are consolidating around the psychological $80/bbl level after hitting interference at our 3rd tier uptrend line. Meanwhile, the Dollar is weakening and equities strengthening due to a combination of strong China econ data along with dovish statements from Fed officials. The impressive Industrial Production and Retail Sales data out of China helps compensate for recent news that China's gasoline prices will rise by around 3-5%. The increase in production and retail consumption in China bodes well for crude's aggregate demand. However, crude futures are still facing headwinds at $80/bbl and previous 2009 highs as investors are likely waiting to see how the EUR/USD and S&P deal with 1.50 and 1100, respectfully. A topside breakout in either could signal a similar movement in crude due to their positive correlations. On a positive note, gold has extended its gains above its psychological $1100/oz level. Gold has led the way recently and the precious metal's topside statement could prove to be a positive signal for crude.