The market for crude oil which has shown a surprising level of correlation with the S&P 500 market over the past several weeks, which was also rather sluggish last week as buyers appeared largely absent from the scene, reminiscent of a sharp pullback in the market. We noted strong resistance come into the market just above the $55 long term support and resistance level deeming the push past the level earlier on as a fake breakout and a trap for the bulls. The market hurried back down last week and the strong close below the $55 level may potentially point to some more bearish activity in the market this week. If we do see more selling, we may well be in line for another retest of the critical psychological $50 round number which may be tested for its support potential for a market that largely appears to be bullish for the time being.
