Now it's oils turn to track a 1-2-3 reversal. This time the trend will be down however. The S&P confirmed the trend reversal today BTW by closing above the intial reaction.
Oil should now test the highs. I have my doubts as to whether it will be able to push above the 50 DMA before rolling over again though. Notice the 3 day RSI is already close to pushing into overbought. In a declining trend overbought levels get sold fairly quickly. We'll just have to see how this one plays out. Needless to say I'm not ready to buy oil yet.
Market Direction Change
2 weeks ago