Oil Continues to Move Lower
The February Crude contract (CLG8) closed lower today, off by about 1%. Just days ago, Oil was flirting with the $100/barrel mark intraday, but that turned out to be quite the point of mental resistance for bulls as prices quickly retreated and haven't been back.
Today's inventory report showed a larger-than-expected build in Crude stocks, and the greater supply numbers invited bears to the party – at least 1% of them. The Dollar didn't help matters for Crude, showing some strength today with a gain of nearly 1% in the index (DXH8).
On the chart, Crude Oil is below both moving averages. It won’t take a lot to bring things back, but this level signifies that things are heading down fairly quickly. It also appears that 90 is a level of support based on the mid-December numbers seen here.
Tomorrow brings initial claims, housing starts, and an announcement from the Philadelphia Fed.
Mike Tosaw, Director of Education
