Oil Is Now The Driving Force Behind Every Market Move

Oil has now replaced the U.S. Dollar Index as the driving force behind every market move. In the past, when the U.S. Dollar Index sold off or declined the major stock market indexes would inflate and trade higher. These days since the Middle East is in turmoil it is higher oil prices that have caused the stock markets to deflate and decline. When oil pulls back or declines now the major stock market indexes rally and trade higher.

Today the popular United States Oil Fund (NYSE:USO) is trading higher by 0.33 cents to $40.16 a share. The USO is getting a bit stretched on the daily chart, however, that does not mean it cannot trade higher. Normally, a pullback or consolidation would be in order from the current pattern on the charts. There just may be too much uncertainty in the Middle East to see a meaningful pullback at this time. The USO will have intra-day support around the $39.70 area and more around the $39.25 level. Please remember oil is very sensitive to geopolitical events.

About Nicholas Santiago 575 Articles

Affiliation: InTheMoneyStocks.com

Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets.

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