Author: Jeffry Turnmire

This area is fraught with danger, because a daily close below that 78.6% level around $68 can lead to a continuation and extension lower for oil down to a target around $59.

A pullback or extension that almost matches a prior move points to an echo. That means we can expect a similar following move.

Every time SVXY gets a pullback greater than about 15% we see a bottom form on SVXY and then a strong rally right back to the prior high from where it just corrected.

Don’t jump the setup in HSBC early, because the whole pattern breaks down if HSBC drops down below $32.

The current interest rate environment isn’t friendly for refinancing big chunks of money. It’s going to be WAY more expensive, in a time when people want to work from home… leading to less demand. Higher prices and lower demand creates our perfect storm.