DOW is turning BEARISH?

Of course it is Jim.

The Dow is full of "industrials". The industrials consume energy. If oil prices are going to rise, then the price for energy goes up undercutting the margins of the DOW. Notice how the DOW has rallied since June-July while oil prices have fallen.

There are historically two pullbacks in any given year. One happens in May and the other in September. The one for September has been skipped and overdue.

There is a minefield of economic data and rising oil prices in the next 3-4 days. 60 dollars is no longer the ceiling for oil, but now the new floor. We could see 70 dollars per barrel by next year increasing the price of energy by 16%.

If you turn these charts into weekly charts, then you get a hanging man at the end.

It was nice knowing you JBLU. Back to the single digits you go.
 
You must log in or register to reply here.
Back
Top