Crude Oil, The Most Crowded of Trades, Drops 11% Since Last Wednesday, Finds Buyers at $48, But Not Necessarily a Significant Low

Crude Oil hit a new reaction low at $47.90 in pre-market trading, down from $53.80 on March 7 (last Tuesday), or -11%.

My near-term pattern and momentum work argue in favor of the start of a two-way market, but not the establishment of "the low."

With Crude Oil DSI at 40 as of Friday's close, we should not be surprised to see Oil press closer to $46.00-$45.00 before strong buying interest emerges...