Not All It's Cracked Up to Be

Yesterday's upside reversal in crude was sharp enough to see me sell my ERY (triple-short energy sector ETF) for about a 1% loss. 

However, the reversal did not follow-through and was not all it was cracked up to be. Crude is back to sloppy trading from a swing perspective today, as UWTI, the triple-long ETF, is down more than 12% as I write this. Another new price low for crude could easily come within the context of a longer bottoming process. But a continued sloppy sideways range like this is a thesis we have been looking at for a while. 

Beyond that, there is still an issue as to whether equities as a whole will follow crude lower.

The SPY, ETF for the S&P 500 Index, on a shorter-term timeframe is suggesting that is a possibility, given the highlighted triangle breakdown attempt this afternoon.