A pipeline under fire due to a Saudi Arabia’s Eastern Revolution appears to have sent crude oil higher above $110 this afternoon. Stocks are well off their highs, though the leaders of the day such as Goldman Sachs remain strong. Although the bears were basically unable to follow-through to the downside from yesterday, the bulls still need to get one of these breakouts to stick. Otherwise, we are still largely correcting sideways, through time.
I had noted the bull flag on USO, ETF fro crude. I am impressed with the buy volume after this recent mild pullback. That said, crude was set up well even before this news. So, I would resist the urge to extrapolate that stocks must go down just because crude goes up and looks to go higher.
More on the recap after the bell…