Crude Oil Futures Tests Triangle Resistance

Crude Oil futures are testing a descending triangle's descending trendline after recovering from Monday's intraday low at 53.  While there was a bearish reaction after briefly probing above the trendline earlier, the pattern's resistance seems vulnerable to be broken, given the amount of times it has been tested. Also, just above the intersection of the trendline lie the latest few highs. A higher low could be confirmed with a move just above 57, which would mark the first time in over a month.

A clean break would re-open the psychological 60 threshold but there again lies potential long-term trendline resistance, originating from the 2018 peak. If, however, the 57 handle provides a cap once again or the 55 region fails to hold price-action, then focus would shift back towards 53 ahead of the key 50.50/50.00 area.

Heightened Volatility Could Trigger Sizeable Breakdown For Risk Assets

S&P 500 & Nasdaq 100 Futures Pause At 20-Day MA's

Both the E-mini S&P 500 (ES) & Nasdaq 100 (NQ) are showing resistance at their 20-day MA's. Both have bumped-up against their respective MA's yesterday and yet again intra-day today. The 50-day MA is rising and is located near last week's highs, just above current price-action for both metrics. A bearish harami is setting-up but will require subsequent weakness tomorrow (Wednesday) to confirm a shift in momentum to the downside.

Specs Continue To Ignore The Trend In Bond Futures

Nasdaq 100 Remains Supported By Trendline For Now

Nasdaq 100 held a trendline while the Russell 200 & Dow held key lows on Thursday to help global markets stabilize. Unfortunately, its too early to declare the "all clear" signal until the major indices can clearly take-out this week's highs and the 50-day moving averages respectively. So, in one sense it is make or break time and if this reprieve in volatility can continue, then the steady grind for the Nasdaq 100 could continue back towards the psychological 8000 region.

Specs Fight The Rise In Treasuries

Specs All Quiet Ahead Of The Volatility Storm