Crude Oil sitting on support trendline
The price of oil (Light Sweet Crude is the most commonly quoted price) is a good indicator of broad economic demand and, these days, speculative animal spirits as well. The trick is that we don’t always know which part of the equation is driving the resulting price. Since breaking down from its recent high of $115 in May, Light Sweet Crude has found support on a trendline channel that dates back to early 2009.
It’s something worth keeping an eye on as the US Dollar flirts with reversing to the upside in the medium term, and the S&P wrestles with a possible breakdown at its 50 day moving average.