Oil is the trend broken

Oil is looking vunerlable here.  It broke its strong uptrend on Friday from October, finding support at 96.92.  It will be interesting to see where oil trades from here.  It could be looking to pull back to its latest breakout level at 94.08. 

All in one chart

This chart displays the key sectors that influence the market, included on the chart is the $USD, XLF, OIL, QQQQ and $SPX. Oil is weak this morning and the dollar is strong, if oil begins to break down watch how the overall market reacts.  Additionally if the dollar rallies on news that the Euro is stinking again, expect some additional weakness in the market.  I am still maintaining my bearish position, untill the pikercator gives us a something different.

Here is a link to the live chart:

Oil

Oil remains above its support level for now but pre-market oil is below the $81.30 level.  The indicators look to be showing signs of exhaustion and rolling over.  If oil begins to sell off, stocks should follow.  The $80 level will be key for oil. 

Oil

Watch the 81.30 level this is the first bull support level that might be tested.

 Take a look at Market Club's Trade Triangles.  A daily sell triangle was given on Wednesday. For MarketClub Alerts on any stock, futures or commodities Click Here

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And here is Market Clubs trend analysis

Click Here for free trend analysis

Oil the Dollar SPX Oh My

SPX, the bears made a lot of noise yesterday but in the end failed to really break any support.  1087 still holds on SPX and it is touching it's up trendline.

Oil once again preceded the drop in equities, it too is nearing its trendline and pervious top from the spring.

The USD finally broke out of its down channel, can it stay above it is the question.  Resistance is at 77 but also at 76.29.  USD also closed above its 50 EMA for the second time.

 

Also check out Market Scans Section for a new set of stocks.  The scan is for high short interest on stocks, incase we get a squeeze.

Black Tea

Oil has been very interesting lately, it has been consoldiating between the $80 and $77 after it's run up from $72.  Oil is now forming a flagging pattern that could potential break out sending it to $92.  Right now it is hard to predict where oil will go, indicators are netural and the price action has consoldiated.  Putting money on either direction is a gamble, wait for a break out of $81 or a break down of $77.  Which way oil goes could predict where the market moves as well.