Today feels like a correction day after we saw strong rallies in the energy markets including crude, gasoline and natural gas. It is not uncommon to see a correction on Friday when the balance of the week has seen the price discovery grind in one direction.
After attempting to breakout through the upper range resistance level, all of the commodities in the oil complex failed and have been in retreat mode since early yesterday and into this morning so far.
Is the worst of the risk asset selling over or was Tuesday’s trading activity just a bit of short covering rally in a broader downtrend that is just getting underway? The market sentiment tends to quickly react to changes in the status of the global economy.