Is Oil topping? It certainly looks extended below, as it has accelerated to a third and increasingly unsustainable up trend angle. When crude broke long-term resistance in the $41-42 areas, at the end of July, stocks attempted another rally, in anticipation that crude oil would turn down against resistance. Once crude broke to new all-time highs, the short rally in stocks failed.

THE PRICE OF OIL VERSUS STOCKS
click for larger chart
oil_prices
Source: Decision Point Research

Carl Swenlin notes that “Oil has moved into uncharted territory and is above historical resistance levels. It could be headed for a major blow-off, or it may have moved permanently into the bottom of a new long-term trading range.”

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Category: Finance

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