Record oil, nat. gas, and gasoline douse our modest three or four day rally, this happening despite a rise in the dollar--WAIT A MINUTE! The dollar is DECOUPLING FROM OIL? This little game has to stop RIGHT NOW.
Is there any wonder that there is some support for the Democrats, who are proposing a new energy package that would increase margin requirements for trading oil futures?
Little wonder, too, that in the face of the energy onslaught traders have stepped back and taken profits across the board: from leaders in tech, right down to financials, industrials, and even (gasp!) energy stocks.
Most depressing, the S&P 500 has again dropped below 1,400; those of you think technical trading is voodoo should look at the intraday chart of the SPY; once it moved below 140.50 (1,405 on the S&P), volume picked up, markets moved down, and when it passed 140.0 (1,400 on the S&P), well, all hell broke loose.
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