Intraday Review: Stocks Soar on Drop in Oil

This day, market were excited after Light sweet crude fell $4.14 to settle at $134.60 a barrel on the New York Mercantile Exchange, compounding a drop of $6.44 on Tuesday.
In addition to sinking oil prices, investors found relief in a decision by Wells Fargo & Co. to boost its dividend that helped counter some of the market's concerns about the health of banks.

Investors exited government bonds and back into stocks as it appeared that the slowing economy will curtail demand for fuel and, in turn, energy costs. The Dow Jones industrial average rose 276 points, or 2.5 percent, posting its best daily gain since April. The broader Standard & Poor's 500 index also gained 2.5 percent, while the technology-dominated Nasdaq composite index surged 3.1 percent.

Let's look the Dow intraday chart below:


According to Mark Hulbert's Theory, if the intraday chart direction is nearly forming an upward or downward straight line, further it will be followed by an opposite trend in the next. I drew up an interpolation linear overlays the chart that is shown by a blue line. Accordingly, I expect tomorrow the market will be drop.

Additionally, light sweet crude oil future also signs a potential rebound. It touched the support trend line around $138.



Please Note!

This is generally never true. Before buying or selling any asset you should do your own research and reach your own conclusion. See my Disclaimer on the bottom for more information.

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