Tugging Along

It appears as though equites are moving with crude oil rather closely these days, perhaps tugging along with it today. Black Gold's gap higher today negated yesterday's apparent bear flag breakdown on the USO ETF daily chart, as equities also gapped up this morning. At the moment, the FANG gang is still intact, and perhaps will have smooth sailing until the second week of January. 

Another part of the market we are watching closely would be the small cap stocks in the Russell 2000 Index. On the IWM ETF hourly chart, below, for the duration of December, the downsloping resistance trendline coincides with this morning's highs of $115 or so--Bulls will likely need to clear and hold that level, regardless of FANG strength, to sustain a bullish breakout in the market in 2016.