Oil and the Equity Indices Begin to Diverge
Today's action in Oil vs SPZ shows a huge, glaring, positive divergence for Oil for the first time in weeks.
Whether or not the relative strength of Oil will sustain will be the question during the afternoon session.
If the e-SPZ has reached near-term upside exhaustion, and reverses sharply lower later today, will Oil be able to preserve some or most of its morning gains?
Right now, my near- and medium-term work argue "yes," the upside breakout in Oil will prevail and diverge from equity-market weakness.
