Wednesday, August 3, 2011

Oil Futures Update

One can not escape the fact that "death cross" has developed in WTI crude oil futures. Death cross is when 50 dsma crosses below 200 dsma. The price is firmly below $95, which becomes resistance now. It is only a matter of time before it tests $90 low, made on 6/27. It looks like we could be in Elliott wave 5 on daily. If you are short, you are happy and trailing your stop down. Let it test $90 and see what the outcome is, if you want to fish for bottom. I think that a lot of it depends on what SPX does. Oil is @ 100% correlation to equities lately. API showed a big draw last night. EIA is out in 5 minutes. Let's see what happens...

Build of 1 mil barrels - way off from API. Let's get that test of $90 over with. 

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