How long can the Energy Sector diverge from Crude??

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Equity trends remain bullish, but Monday’s stabilization is highly suggestive that the recent volatility very well could be complete, which might give way to a rally back to fractional new highs into late November. Despite recent deterioration in market breadth, bearish cycles and evidence of speculation that had cropped up in recent weeks, some of the sentiment positioning has pulled back from recent extremes.  Given AAPL’s chart improvement lately, along with NVDA’s upcoming earnings, these could be two important catalysts for Technology in the weeks ahead.   Overall, it’s still tough to rule out early December volatility, but the recent deterioration in Equity indices has proven constructive and still insufficient to suggest any larger stock market setback is yet upon us.   

To recap the thinking from Friday, which seemed to suggest Equity indices might be close to bottoming:

SPX is approaching 50% retracement area of its prior runup, while QQQ has hit trendline support. Elliott-wave theory shows this entire week’s correction to be a corrective pattern, not something that would lead to much further weakness. DeMark weekly exhaustion is not yet complete for SPX, requiring a pushback to n...
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