Tuesday, September 13, 2016

Are The Energy Markets Trying To Say Something (OIH, USO, XLE)?

I continue to stay on the sidelines because, "why?" "Why" would I want to get bogged down in this internecine chopping around? We all know nothing is going to happen until September 20th when we finally get a verdict on interest rates (I don't know how much we can expect before the election, mind you). The energy markets are a perfect reflection of this. They've been caught in consolidation patterns going back to May and June and I'm staying out until we've heard from the Fed.

Oil Services ETF OIH found support at a line from May and August lows and this week I fully expect it to go back to overhead resistance at $29.25.
Crude Oil ETF USO also finds itself in a stout consolidation pattern. I similarly expect it to find overhead resistance after last weeks sell-off.
Energy ETF XLE finds itself in a rising bear wedge but like the other two overhead resistance at $72.00 should be found whereupon we wait the 20th.