Afternoon focus: Crude, gold and the S&P

WTI crude oil futures are looking like they will close today in the red, after spiking to $53.76 earlier this morning. The money flow index (MFI) on the daily chart is at 90, which is a fairly extreme overbought signal. Sometimes, not only are these signals way too early, but they take more than 1 day to foretell the next correction. I believe at this point in the very near-term, rallies in oil will be sold. 

Gold touched above $1,280 per ounce today, and I believe the gold rally is mainly coinciding with the increasing theme of North Korea challenges.

With that, S&P 500 is down .4% today, approaching a key multi-month supportive trendline. If this line gets broken, we can see a run toward 2300 as the “weak hands” exit the long side.

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