Low Crude = Low Markets

18 mar 2021

Broader markets fell today for two major reasons. Mainly, the 10-yr gapped up 6% prior to market open, which when combined with a stronger dollar created a scary situation for investors to pulled money out of the markets to build up cash positions. The second reason was the behavior of crude today- crude is the life blood of the military-industrial sector as well as the financial sector as many banks are leveraged in it, which is why this shook the entire market.

19 mar 2021

Uwaga

We saw today's candle open below the support line, however it did wick up to the solid green line (which is now a resistance). That wick tells us that the sellers at that new resistance are strong, so it's unlikely that crude will get back into that channel short term.