Saudi 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…
*Trends: ST = short-term; MT = Intermediate-term; LT = long-term
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- Vol % = volume percentage greater than average volume
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