Wed Sept 3, 2014
Crude oil has been taking out lots of stop order lately. Today it rallied so we will go with the idea this is a re tracement of the recent fall. It is quite oversold. Look for he CCI to fail near its zero line as it did in July.
XLE Backtesting Break Down
I am guessing the XLE will beweaker than crude oil itself, It looks as if it is testing the underside of the 50 day MA. A failue to rise above this MA will be another clue that this sector may be about to reverse.
On balance volume looks like it is turning down in the lower panel. The move up has been on lower volume.
Gold and the Dollar
The dollar in green has been soaring as the euro falls. And that accounts for the move down in oil in the previous panel and gold shown here. Gold is dropping below its MAs. If dollar strength continues my old target of $1,000 for gold may look good.