BRIEF UPDATE ON THE BROAD STOCK MARKET AND CRUDE OIL (2:00 pm EST)
The broad stock market has been rallying from Monday's low, but today could be a turning point for a reversal so we will wait to see if this market turns down again over the next day or two. Directional momentum in the DOW and S&P 500 has turned 100% bearish this week; however, the NASDAQ remains mixed bullish and bearish. This is interesting as it supports the idea of the NASDAQ starting a new medium-term cycle from its Nov. 20 low of 6,830 while the DOW and S&P 500 could be still completing the final lows of their older cycles. Those final lows may have been on Monday, but I still think there's a chance they could go lower. We will remain on the sidelines for now.
Crude oil is now moving out of a reversal zone specifically for crude (Dec. 3 - 11), but it has not made a new low or high this week. It appears that last week's high at $54.22 (Jan. contract chart) was the turning point for this reversal which means prices could go lower from here. If they don't, we will assume that the $49.41 low of Nov. 29 was a medium-term cycle bottom (and possibly a longer-term cycle bottom as well which, if true, means we are now in a good place to buy). On the sidelines of crude oil for now.
The broad stock market has been rallying from Monday's low, but today could be a turning point for a reversal so we will wait to see if this market turns down again over the next day or two. Directional momentum in the DOW and S&P 500 has turned 100% bearish this week; however, the NASDAQ remains mixed bullish and bearish. This is interesting as it supports the idea of the NASDAQ starting a new medium-term cycle from its Nov. 20 low of 6,830 while the DOW and S&P 500 could be still completing the final lows of their older cycles. Those final lows may have been on Monday, but I still think there's a chance they could go lower. We will remain on the sidelines for now.
Crude oil is now moving out of a reversal zone specifically for crude (Dec. 3 - 11), but it has not made a new low or high this week. It appears that last week's high at $54.22 (Jan. contract chart) was the turning point for this reversal which means prices could go lower from here. If they don't, we will assume that the $49.41 low of Nov. 29 was a medium-term cycle bottom (and possibly a longer-term cycle bottom as well which, if true, means we are now in a good place to buy). On the sidelines of crude oil for now.
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