Tuesday, May 20, 2014

Oil Prices Are Consolidating

One of the things that has been interesting about this expansion is the lack of impact we've seen from oil prices.  As professor Jim Hamilton has pointed out, oil price shocks have been a primary cause of most post WWII recessions, so, on the whole this is good news.

Above is a chart of oil prices.  Currently they're consolidating in a triangle pattern between the upper 90's and ~105, using the 200 day EMA as technical support