Last week I shared that Crude Oil had created one of its largest upside wicks in the past 13 years in the chart below (see post here) Large upside wicks in Crude over the past 15 years has more often than not led to lower prices ahead. Creating another upside wick this week as well? Too early to tell!!!
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Below is an update on this oil chart at last nights close.
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Key resistance for Crude oil remains at (1). In the short-term odds favor that Crude will move towards filling the gap at (2), which will mostly likely be viewed as a positive in the stock market!
CNBC just reported that fund flows into the oil stock ETF (XLE) represented 46% OF ALL U.S. EQUITY INFLOWS for the month of Feb!!! Can anyone say “crowded trade” as the wick was forming???
