Monday, May 16, 2011

$OIX - oil and the look ahead 5-16-2011

It appears that oil should be in a correction mode until early to mid July with a downside  objective that equates to the low to mid $80s per barrel.  I recently reviewed $silver and $gold and they show  similar dates for their correction (before they make another run up?).  This is also consistent with my belief that the market (S&P 500 in particular) should correct into the Jul-Aug time frame.

If you recall I looked at several sectors in February and said we were going basically sideways because the different sectors were set to bottom at different times.  Now it seems that commods are all in sync.  I will try to look at other sectors over the next few days, but for now the evidence is accumulating indicating we get a sizable pullback into July.

Here is the chart for $OIX:

Gl traders.  Do you own analysis.   Did you notice - I added a new widget for chat?  Drop in and say hi.  I am usually there the first hour or so and last hour of the day.  I may also be there at other times

Update - 05-17 08:49 pm EDT  - a chart you might find interesting: 

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