In the market Friday oil tanked and took the stock market with it leaving the S&P 500 closing at the August and September lows which is the S&P's first critical support level after losing its primary channels.
click on image to enlarge
The big question is when will oil take a sustainable bounce for multiple days? One chart that is actually looking quite bullish for oil at this level is the IPATH Crude Oil Index: OIL (shown in the lower chart above). Over the past week, the OIL has been building a base out of pops and drops but nonetheless, when you look at it from far enough away it is indeed a base and it's at its lower channel line. There was heavy call buying in the OIL Friday also, with the OIL ECN ramping up in the late afternoon. Is this particular oil chart what the powers that be are keying off of to plan a market bounce?
Trade well my friends
Alan
