Crude Oil Continues to Mirror Action in the Equity Markets

Is the market a buy or short sale? That’s the question that is going through many trader’s minds this week. Should I buy this market, or should I go short this market? At the moment, this market is being driven by perception and sentiment. Eventually that will change and the market will become driven by the direction of the major trend.

Our major trend indicators remain negative on the equity markets. We are also looking at the S&P 500 at the top of the Donchian trading channel. I believe that was the reason for yesterday’s sharp move down.

In order for this market to really get going on the upside it needs to clear the highs of 1230 on the S&P 500 in a convincing fashion.

There is so much confusion in the marketplace right now.....Interest rates, mortgage foreclosures, contagion in Europe and the occupation of Wall Street. The markets always have numerous conflicting thoughts, but eventually the market figures it out and goes the way it wants to go. Our job here at MarketClub is to recognize those changes and alert you to what we are witnessing.

Let's look at todays action in crude oil......

The crude oil market continues to mirror the action in the equity markets. The highs seen yesterday in the December contract at $88.40 a barrel remains to be taken out if this market is going to move higher. With mixed Trade Triangles and a Chart Analysis Score of +70, there is no clear cut direction for this market at the moment. Crude oil is very overbought on the Wiliams % R indicator.

We are looking for a pullback to the $80 a barrel level, which would represent a 61.8% Fibonacci retracement. Our long term Trade Triangles continue to be negative and we expect they will once again dictate the tone of this market. Long term traders should continue to be short the crude oil market.

December crude oil closed up $1.88 a barrel at $88.50 today. Prices closed nearer the session high today, hit a fresh four week high and scored a bullish “outside day” up on the daily bar chart. Crude bulls still the overall near term technical advantage and gained fresh upside momentum today.

Monthly Trade Triangles for Long Term Trends = Negative
Weekly Trade Triangles for Intermediate Term Trends = Positive
Daily Trade Triangles for Short Term Trends = Positive
Combined Strength of Trend Score = + 70

Now, let’s go to today's video and look at the 6 major markets we track every day.

Adam Hewison


Check out Today’s MarketClub Trading Triangles

New Video: Downside targets for the S&P 500

In this short video , we share with you the downside targets that we have independently arrived at for this index. This video is short and to the point, but you will see exactly what we're looking at. The chart pattern and downside counts are similar for all of the equity markets and I believe that this Friday we will see exactly what's going to happen.

As always our videos are free to watch and there is no need to register. All we ask is that you take a minute to make a comment and let us know your views on this market.


Watch Downside targets for the S&P 500


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New Video: Downside targets for the S&P 500

In this short video , we share with you the downside targets that we have independently arrived at for this index. This video is short and to the point, but you will see exactly what we're looking at. The chart pattern and downside counts are similar for all of the equity markets and I believe that this Friday we will see exactly what's going to happen.

As always our videos are free to watch and there is no need to register. All we ask is that you take a minute to make a comment and let us know your views on this market.


Watch Downside targets for the S&P 500



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The Nasdaq Cut Open and Broken Down

Since we follow the NASDAQ as a market direction indicator and crude oil future demand concerns rely on the markets right now we thought it would be a good idea to examine the NASDAQ Index. This market, which made its peak in 2000 at the height of the dot com bubble, remains in a secular bear market.

After making a low in March of 2001, this market has had multi-year recovery which has rallied it very close to a 50% Fibonacci retracement level. After a nearly 50% recovery, this market now appears to be faltering.

The months of September and October are now with us and both of these months tend to be treacherous for the equity markets. We would not be surprised to see more of a two way trading market before it eventually falls on its own weight and resumes a downward path. This is what we expect to happen, however, we are going to rely on our Trade Triangle technology to give us the perfect timing for that event.

Click Here For Today’s Video and we will show you graphically what we expect to happen to the NASDAQ Index.

SP 500 Update: Trade Triangle Video Analysis

With the S&P 500 making new highs and as world equity markets following suit, the question becomes how high can we go?

In this short video on the S&P 500, we outline some mathematical upside target zones that we am looking at for this market.

You can watch this video with our compliments and there is no registration requirements. We would love to get your feedback so please feel free to leave a comment and let our readers know how high you think the S&P can go.

Here is 4 more FREE Videos from INO TV!

How High Can Crude Oil Rally Given The World Economy

In our new video on the crude oil market we see how this market has been creeping up in value and in now trading over $50 a barrel. The question is "How high can crude oil rally given the world economy?"

Just Click Here To Watch Crude Oil Video

The potential is that crude can go higher as the United States is addicted to oil and cannot at this stage run without it. The same goes for most other countries. Whatever the arguments are for crude oil we think you will find this short video of interest.

The short video outlines the path for crude oil and is free to watch.

We hope you learn something from this video. Feel free to give us your feedback on what you think is going to happen to this market in the future.

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The direction of the S&P 500 is such a big part of our daily research for trading crude oil that I want to include this video on the S&P on the rally we have been experiencing.

Take a look at this short video and see if the rally in the S & P 500 market is for real, or if it's just a rally in a bigger bear market.

Just Click Here To Watch SP 500 Video

Our brand new video details what we think is going on in the equity markets. We also want to share with you the key S & P 500 number that if broken will turbo charge this market.

The video is, as always, free to watch. Please feel free to leave a comment, your comments and feedback are always welcome.