In a somewhat surprising outcome, Crude Oil dips to a new swing low at the same time the US Stock Market rallies back toward all-time highs.
This disconnect is interesting as we turn our attention to the bend in the intermarket relationship.
Generally Crude Oil and Stocks exhibit a positive correlation (they both move in the same direction).
However a disconnect took hold from June into July as Crude Oil traded steadily lower while stocks advanced amazingly higher to all-time highs.
Despite positive momentum divergences on the hourly chart, Crude Oil continued its short-term downtrend toward – and now under – the $45.00 per barrel price target.
The commodity has declined from its recent peak above $52.00 per barrel to the current $44.00 level.
What looked like a possible bullish reversal up has now turned into a sharp sell-swing and breakdown lower.
Focus your attention on the $45.00 per barrel target and look to play the swing AWAY FROM this key pivot.
For more daily updates from Corey, visit his blog at Afraid to Trade.com.