Oil - the big red flag...to the bulls

A very bearish week for WTIC oil. The general weakness seen in Oil since April is continuing, and looks set for a further 2-3 months of downside - to levels not seen since spring 2009, when the SP' was in the lowly 800s.


WTIC, weekly

WTIC, monthly, 20yr

Summary

To be succinct, the break of $80 this week was a major warning signal to the broader market. The next key level is $60.

From my bearish viewpoint, the only issue is whether WTIC will level out at 60, 55. or $50 before the next major dose of QE by the Bernanke.