Elliot impulse wave on the weekly is over, now we begin the correction wave. price action has reached the top of its megaphone channel. XLE, which is the most connected sector to oil also has major resistance at $70, and it rejected that just the other day. The last time XLE rejected at $70, it fell 50% over the following year. Very simple TA, but I mean C'mon,...
If there is more buying here than there has been in the last 3 months then this will continue, SPY and QQQ will continue upwards, and this will outperform markets. Volatility has been crashing from the ceiling since the correction just a week ago, the VIX is already down 45% from the highest point on December 3rd. Short rally into January.
