Key Level in XLE/OVX
I have been running a correlation between the Energy Select Sector SPDR ETF (XLE) and the Oil Vix (OVX). it is running at an interesting multi-year support and resistance level. We can see the formation of a double bottom at this level. The move on the price of oil will be determined by what happens at this level in the XLE/OVX chart. This correlation has been know to move ahead of the actual oil market. Respect at this level will indicate that we are moving forward from the doldrums and ready to push towards better levels in the oil markets. We'll have to see what comes out to the COT report tomorrow to get a better indication what he Big Boys are doing. This current level has been the launching point for many long term moves higher in the past.
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