July Crude continues to plunge from $106 to $91 since early May with DX continuing to rally straight up in this same time frame. Not a coincidence. Price has retraced a Fib 61.8% reracement of the Oct to March rally and is very oversold and showing postive divergences on many oscillators. Doesn't mean it can't become more oversold but note the RSI 21 below the 30 line. This has only occurred two other times in the last few years and marked a low point in the market that saw a sizable bounce back. This was last seen Aug/11 and May/10 and before that Oct/08 lows. Bottom line: If short the trend is your friend BUTTTTTTTTTTTTTTTTTTTTT keep those stops handy.......................you are going to need them soon enough,. Also note the July/Dec Crude ratio chart is flat and not making new lows so the front months are not getting weaker relative to the back months as one would think.
My recommendations? Don't have any...........As always draw your own conclusions and make or lose your own money. These are simply my observations of the charts,nothing more.