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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Davy Crockett who wrote (16365)	12/16/2014 4:45:34 PM
From: stuffbug	Read Replies (1) \| Respond to of 33421

Correlation fell apart in the afternoon - it works until it doesn't. Some large players probably changed their computer algorithms. After 2:30 oil flatlined whereas the SPX rolled over and finished very close to the low of the day. Oil may be ready to rally here. The Canadian Energy Index closed at a 5 day high. Today's tall green candle engulfed the previous 3 and very nearly the 4th. The Canadian energy stocks have led the price of oil lower all the way down. So today's action may be signaling the start of a counter trend rally in oil. If so, that should lead to a reversal in the SPX. Although the Canadian composite index was down on the day (by roughly 0.2%), the TSX 60 (the CDN equivalent of the SPX) closed higher by 1.2%. Top tick to bottom tick, the decline has been 5.1% in 7 days.