View From The Hill (Feb-23-2016): Equities Shadow Oil Price Moves and Surrender Support

Posted on Posted in Views From The Hill

Commentary

bulls-and-bears4Saudi Arabia’s oil minister announced that it will not be cutting oil production and by doing so withdrew support from commodity energy prices. As the stock market has been shadowing oil’s every move, today’s selling of equities was no surprise. Besides, the recent stock market rally had encroached upon overbought territory rather quickly while a majority of the SP-500 components had yet to reclaim support at their 50-day moving averages.  The market is no slouch and the 50-day moving average is a significant test and not one to be taken lightly.

Switching back to WTI Crude Oil, there does not appear to be any decent support until $28.70. Hmmm… Can you imagine the psychological impact on the equity markets when oil breaks $29 per barrel? I can and foresee the SP-500 trading to down to 1870 and perhaps revisiting 1850 levels again.

No further comments this evening, but stay Hillbent for the Market Direction…

 


Performance Summary

*Trends: ST = short-term; MT = Intermediate-term; LT = long-term

 

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Market Condition

 

Daily  Chart Analysis
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Follow the Money

  • Vol % = volume percentage greater than average volume
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Disclaimer

Hillbent does not provide individualized market advice. The information we publish regards securities in which we believe our readers may be interested and our reports reflect our sincere opinions. Nevertheless, they are not intended to be personalized recommendations to buy, hold, or sell securities. Investments in the securities markets, and especially in options, are speculative and involve substantial risk. Each individual investor should determine their respective appropriate level of risk. It is recommended that you seek personal advice from your professional investment advisor and conduct further independent due diligence research before acting on information published in any of our reports. Most of our information is derived directly from information published by the companies on which we report and/or from other sources we deem to be reliable, without our independent verification. Therefore, we cannot assure the completeness or accuracy of information contained within these reports and we do not in any way warrant or guarantee the success of any action which you take in reliance on our statements. Hillbent.com, Inc. or its affiliates may own positions in the equities mentioned in our reports. We do not receive any compensation from any of the companies covered in our reports.

 

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