Reversal Fresh Out of the Oven

Crude oil, energy stocks, and Russia, the three markets which have effectively been crashing of late, are staging upside reversals this morning. This type of action could easily be accomplishing the act of punishing latecomer shorts who were pushing their luck this week. On the XLE, ETF for the energy sector, daily chart below, note that we have a bullish engulfing candle in the works, signifying the reversal today. Nonetheless, it is still early on in the session and bulls are going to need to see this strength stick to cement even a short-term low--The fact remains that these charts are incredibly damaged. The rest of the tape is flipping green, with a sharp upside move in the Dow. Recall that the Fed is tomorrow, likely to be a big market event. If we see some relief in the form of a tradable bounce, RUBI is still an actionable long setup over $15, seen on the second chart, below.