A Colorful View on SPX, Gold & Oil
Crude Oil Futures – Daily Chart
Oil is trading a key pivot point and also looks to have formed a possible bear flag. At the moment I am neutral on oil, it’s a 50/50 guess as to which way it will go, so I am just watching for now… But I have pointed out some key resistance and support levels for those with oil positions… This small chart makes it look like I put a ling at ever $2 but if you look closer some are above and below those even numbers.<a rel="lightbox"
Mid-Week Stock and Commodity Wrap Up:
In short, I think the market is on the verge of another rally which is very exciting since we cashed out in late April before the market had the big sell off. It will be nice to put some long term plays to work so we are not so dependent on the short intraday plays which last 1-2 days because of the extreme volatility in the market.
I figure we will see stocks and gold move up together but I’m not really sure about oil at this point… If oil does not move up then the market will have limited up side and instead of a new bull market rally to new 2010 highs we could just see move up to test near the April high. Then it could roll over and start heading back down triggering much larger sell off as we enter another bear market. All that being said… it looks to be a couple months away still and a lot can happen in that time. As a market technician I take each chart one day at a time.
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