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It still about oil, but the various earnings dissappointments coming out suggest that there won’t be a 1 to 1 transferance of good oil news into positive stock market traction. On oil, it’s now all about $132 per barrel. Oil is allowed to take a breather and attempt some rally after it’s sharp fall. But the 132 area that was support for six weeks is now resistance. If oil is unable to spend any time whatsover above 132 in the next day or so, that is further indication that more steep declines lay immediately ahead. I think the preferred outlook now is for oil to spend a few days chopping around and trying to get over 132 (while stocks consolidate). When the oil sellers tire of waiting for higher prices that don’t seem to come, then they will aggressively hit bids and 120 will be the quickly realized.
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