Of course ! It has negative implications on transportation index within Dow ! But at the same time it supports Oil-related stocks ! And not to forget : it supports also higher import prices and at some point it hurts consumers ... Second round effects will occur if we stay more then a couple of weeks or month above 80 USD...
you know last year I believe, there was a similar scenario when 4 hour chart formed a classic very extended divergence, I was waiting for it to start retracing...it did a bit & then train full of bulls went through all resistance levels, hence I have now lost faith in that divergence that I kept posting. Instead, I am looking at the hourly chart and histogram is starting to climb on lower time frames, so yes, ImO we won't head much lower, we haven't already & that means something, doesn't it?
Amazingly enough, lower 60 MIN BB is just running at 7974.00...funnny enough it´s the supporting DAILY 7976 area I talked of in the morning...
completed bullish divergence on 60 minute chart <img src=http://elitetrader.com/vb/attachment.php?s=&postid=1643455>
I had no bigger idea in the morning as to go long, but we have some serious trouble over here breaching 8022.00...