Oil prices move equity prices, plain and simple. When oil gets the sniffles, equities catch a cold. When oil drops through major support, equities just plain panic.
So, it’s no surprise that equities are panicking just a little this morning, as CL is pennies away from completing a Head and Shoulders Pattern which targets 31.55. I understand why it’s necessary. But, equities are not happy one bit. The futures are currently off 14, which should land SPX right at our secondary downside target.
Our first was overshot by 2 points yesterday before a sharp snapback rally that probably left most people long overnight. We remain short.
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