Markets started off with a gap higher but quickly rolled over until 11:00 a.m. Earnings from Kohls (KSS) and Home Depot (HD) really knocked a lot of wind out of the bulls. They did recover by midday, but it’s not over yet.
Crude oil got hammered today, down over 2%. However, take a look at the chart on Crude futures.
Crude futures hourly chart
Futures contracts trade round the clock except from 5 p.m. to 6 p.m. EST. Notice how it’s looking for support here at the previous swing low. If it holds here and moves higher, that’s pretty bullish. That means traders continue to keep oil in that long trading range between $56-$58.
If oil takes off from here, then we’ve witnessed a stop sweep in action. That’s market manipulation for you.
Also of interest, the VIX is only up about 1% as is the VVIX. If things were really going to fall apart these would be jumping much higher.