Oil is on a tear, yes, but we are now in overbought lala land and oil bulls pushing their luck. Any hint of good news and we will drop 2 to 5 points in a snap. Next resistance is 69.45. A break above is clear skies to new highs, failure could end the run. Needless to say, a drop in oil prices will be supportive for equities. My bias at this point is for oil to drop and equities to rally, but play it safe and use tight stops. NQ is at trendline support and monthly pivot.
This entry was posted
on Sunday, January 22, 2006 at 7:24 PM.
