Oil Decline Hurts Stocks
At one point today the DOW was down well over 100 points, trading again at the 16200 level. The market dropped due to the significant decline in oil. Oil was down over 1.70 trading near the low 44 range at one point. The oil inventory numbers were bullish but the diesel corruption scandal in Europe caused oil to fall. At around 12:30 there was a report that the Volkswagen CEO resigned and the S&Ps shot up.
I am 75%-80% confident that the low of 15379 is in for the year. I see a lot of volatility in the next couple weeks and I am looking for a pullback to make a higher low in the 15500-15900 range where the gaps in the market should get filled.
It was a very wild day in oil. Oil shot up to around the 46 level and then fell down to the low 44 range. I do not see any clear patterns in oil right now.
Gold was up well over 6 dollars today, now trading at 1131. I see gold making a higher low and then eventually I expect the 1144 level to get taken out. If the 1144 level is taken out on a daily basis I would then be looking for a pullback in gold to go long.