As stocks were moving down into the daily cycle low bears could use the possibility to turn down price from the red . That was the only reason oil was dropping so heavily last week Friday. Normally we would have had 2 -3 nothing day around the .
The next move will be a break above the red . As we break it I will remove that from the chart and the only I'll be watching is the blue daily cycle which we will be testing or breaking down at the daily cycle low. Though we are getting a bit late in this daily cycle I still think we have 7-10 more days to rally and I would like to see oil to break above the previous high (51.6$)
If stocks are starting to rally out of the DCL today that will give a big push to oil shares and oil also.
The big winner will be XLE and ERX in this rally.
Let's wait the close