What I’m referring to is the problems with the economy and the sovereign debt problems in Europe. It would appear as though no politician wants to touch these major economic problems with a ten foot pole. Of course like everyone else on the planet they are concerned about protecting their own jobs and getting reelected.
The market action in the equity markets today can only be described as negative. Gold may be having a major reversal, and the dollar is soaring to its best levels in quite some time. Like I have said before, the markets are never boring.
The pullback in crude oil from the top of the Donchian Trading Channel that we have mentioned in previous publications has now taken place. The October crude oil contract has also managed to ignite an intermediate term sell signal when it moved below the parabolic SAR indicator. This should indicate that we will see more sideways to lower price action. With a score of -65 we expect we will see a broader trading range with support coming in around the $80 a barrel level.
At the present time our long term monthly Trade Triangle indicator is negative while the weekly Trade Triangles is positive which is creating a mixed picture at the moment for crude oil. However, the longer term monthly Trade Triangle must be given more weight than either the daily or weekly Trade Triangles.
Monthly Trade Triangles for Long Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short Term Trends = Negative
Combined Strength of Trend Score = – 65
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