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.
Oil Under Pressure
NYMEX crude oil has reversed from new recovery highs at 103.37 to test its November support line at 99.20, which so far has contained the pressure.
However, judging by the sharply declining 40-hour RSI momentum gauge, we should expect additional pressure that extends weakness towards a test of much more important support at 98.25/00 next.
If this level is violated, this should unleash long liquidation that sends nearby oil to the 92-90 vicinity in a hurry. The U.S. Oil Fund ETF (USO) and the ProShares UltraShort DJ-UBS Crude Oil (SCO) are ETFs to watch.