Crude

Crude was clobbered today for almost 4%. Range was huge at $4.23 with about 1/2 that coming in globex.

I have to say that I was surprised by price action today. It appeared to me that we had a nice 5 up and was setup for upside follow through. Not.

I do however, think that this makes a much nicer minuette degree leg down. Check out the daily chart. You can now clearly see a 3 down from the highs last week.

If my interpretation is correct that crude is tracing a double zigzag for a minute [b] wave, then price must not breach the (x) wave low of 66.94.

If (b) is complete, then price should start impulsing higher for its final (c) leg. I would like to give the all clear, but there is a chance there is some minor downside work left.

If you have noticed, the 50 day sma has been supporting price the last couple of days. Also, the dollar sure didn't hurt crude today. I found that kinda strange.

Very nice positive RSI divergence at the 69.13 L.

Bottom line - I think crude is nearly done tracing this minuette (b) wave. I know where I'm wrong.