All About Oil - Market Analysis for Jul 22nd, 2026

Good Wednesday Morning, MPTraders!  July 22, 2017-- Pre-Market Update:

Today's session will be all about Oil Prices, the reaction of the indices to Oil prices, and the runway to big tech Earnings Reports from TSLA, GOOG, TXN, and NOW after the close...

First Up:  September Oil prices are climbing, which shouldn't be a surprise considering we have been discussing the bullish pattern potential for a run to 93-95 since last Friday... 

September Crude Oil is up more than $3/bbl and nearly 4% this AM, hitting a 6-week high at 88.61 so far as the advance from the 7/02/26 low at 66.44 (+32% in three weeks!) reflects the uncertain outlook of the U.S.-Iran War. Technically, unless September Crude rolls over into a nosedive that breaks and sustains below 83.00, my pattern work points to 83-95 next.... Last is 87.09... (continued below my Oil Chart)... 

As for ES, once again, a directional move during the prior session-- in this case, up all day Tuesday-- fails to have a follow-through consequence the next day. ES is down 28 points after a relentless 47-point rally yesterday.

My attached 4-Hour Chart shows ES remains within the confines of the May-July sideways digestion pattern, which represents EITHER a bullish (Coil) continuation setup OR a Distribution (Diamond) Top formation. ES needs to take out the upper boundary of the digestion pattern at 7628/32 to tilt the outcome to the upside, while a break below nearest support at 7460/73 will argue in favor of a bearish, corrective resolution to the 10-week pattern. 

Today's pre-market weakness, likely in reaction to rising Oil prices, adds more runway (110 points) to the upside for the bulls to have their way, and shortens the runway for the bears to attack nearest support 50-60 points lower. 

This type of multi-week sideways pattern warns us that when a directional move emerges, it should be a violent, significant one. Considering big tech Earnings start this evening, perhaps the reaction GOOG Earnings will provide the directional catalyst that propels ES out of the range... Last in ES is 7518.25...

Next Up: GOOG's technical setup ahead of Earnings...