Oil Spikes Higher Creating Headwinds for the S&P

If falling crude oil prices from the Aug high at $112 into the Nov 27 low at $91.27 represented a beneficial tailwind for equity prices.

Today's thrust and breakout above a one-month resistance band between $93.00 and $95.60 suggests strongly that oil quickly is becoming a new headwind right into the holiday-shopping season.

Today's upside breakout has the right look of the initiation of a recovery-rally period that should propel nearby oil to the $98.00-$100 mark in the upcoming days.

This will goose the price of gasoline and possibly put a crimp into the already challenged retail holiday-shopping season.

Meanwhile, the e-SPZ (e-mini S&P 500) remains under pressure after this morning's "buy-the-dip" rally failed.

All roads point to a test of the prior-pivot low from Oct 20 at 1774.50 in the hours/days directly ahead.

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