The XLE (Energy Select SPDR) has gone straight down to 73.55/50 since we managed to sell short above 74.00 in our model portfolio this morning. Crude oil is plunging as well, and my work is telling me that this decline is more than your run of the mill dip to buy. My near- and intermediate-term work in crude oil is warning me that prices have established a major peak at $90.07 and that the price structure already is in the midst of a significant corrective process that initially should press prices to the $81 area to test the Aug-Oct support line, likely on the way to $76-$73 thereafter.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.