All of the leading natural gas stocks are still trading in a confirmed down trend on the daily charts. This afternoon, these stocks are barely participating in the broad based stock market rally.

Natural gas staged an impressive reversal this morning. Chesapeake Energy Corporation (NYSE:CHK) said they would shut down some of their natural gas production based on the current price of the commodity. This is a clear indication that natural gas has reached a bottom. Why? Because traders now have a firm price level where companies are going to cease natural gas exploration and production.

Yesterday, the markets surged higher hitting the key SPDR S&P 500 ETF (NYSEARCA:SPY) $129.50 level. This resistance level was solid and sure enough the markets are pausing today. Volume remains amazingly light in this new year. In addition, even with a strong Dollar the indexes have continued to hold near their multi month highs.

WTI oil has now traded above $90.00 a barrel since late October 2011. While high energy prices used to signal global economic demand and strength; it is still a direct tax on consumers. These days high oil is affected by geopolitical events, weather, and the obvious action in the U.S. Dollar Index.