Sell signal on /CL (crude oil futures) triggered on this breakdown below the 60-minute bearish rising wedge pattern.
CL 60m Feb 9th
Should this breakdown in /CL stick, potential swing targets for a pullback trade on USO crude ETN are also shown at the arrow breaks on this 60-minute chart.
USO 60m Feb 9th
Likewise, as the stock market & crude oil typically move in unison, should the breakdown in crude futures result in a correction, the broad market would likely move lower as well. /ES (S&P 500 futures) or SPY offers an objective, yet somewhat aggressive short entry (as a counter-trend trade) as it is backtesting the apex of the recently broken bearish rising wedge pattern with the negative divergences still intact. Potential pullback targets shown at arrow breaks on the 60-minute chart below.
ES 60m Feb 9th
Should we get an impulsive rejection off this backtest on the S&P 500 futures, I’ll follow up with pullback targets for SPY & QQQ in the comment section below or in a new post. Otherwise, we’ll be looking at more of the same as any small dips continue to be bought up.