Crude has a bear flag pattern which points to a break of the $50 level (if it plays out)

Stocks are a little weaker but still holding above the 3020 level. However, crude oil is acting like “risk off” may hit the market. If that does happen (which is questionable for sure) we may be looking for a move below the $54 level and then an eventual target of well below the $50 level. Keeping in min the crude market has held the $50+ level since the beginning of the year, a break down could be significant for the oil market and risk appetite in general.

Blake Morrow