Mike's Mid Day Minute is available to members on Monday, Wednesday & Friday evenings, with one article per week available to non-members. Members please login and see "Mike's Mid Day Minute" in the navigation menu towards the top of the page.

Glaring Divergence Emerges Between ES and WTI


For the past two weeks, the heretofore, inseparable tracts of ES and Oil have seriously diverged.

Since Apr 22, ES (Emini S&P 500) is up about 1%, while Oil has declined about 14%.

ES remains in a well-defined uptrend, while Oil has carved out a meaningful, near-term downtrend after its Feb-Mar advance from $26 to $42.

Of course, from a much longer-term perspective, ES is in a multi-year bull trend, that is recovering from a 14% Jan-Feb correction, while Oil remains in the grasp of a vicious bear market from $110 to $26, and may have merely ended a "minor" recovery-rally period.

In any case, as long as any weakness in ES holds above 2040, the bulls will keep directional control. Oil must remain north of $36.00 to avert downside continuation towards $34.

That said, we have to be mindful of a directional re-coupling between weak Oil, and a roll-over in ES.

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!