The price trend in oil is down.
As more and more trend followers jump on this train, what’s it going to take to reverse this? What is the likelihood of something like that happening?
More importantly, what does this means for the stock market if this trend continues, and what actions do you need to take next week, given this scenario?
Keep in mind that todays drop in crude oil now puts it in what I would categorize as “slightly oversold”. Not as oversold as other commodities or even foreign and emerging market stocks, but still moving in that direction.
My best guess is that this trend in oil will continue for a little while, as the effect it is having on the stock market is getting a rousing applause from many camps.
See you next week.
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