Energy looks likely to "take a breather" after recent runup

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The short-term breakdown for most US Equity indices over the last couple of trading days leaves near-term trends negative, but arguably still part of larger neutral consolidation patterns since last fall. The extraordinary surge in WTI & Brent Crude oil has coincided with above-average volatility across many asset classes, which remains difficult to reverse right away, given the escalation in geopolitical tension.  The US Dollar and TNX look to be up near resistance, but the prospects for the US Dollar reversal look a bit stronger than thinking TNX will immediately pull back to recent lows.  With regards to Equities, the bounce attempt since Monday has been a work in progress, but likely could still show a bit more upside in the days ahead.  However, it’s unclear at this point if this can be strong enough to rule out additional selling pressure into the March expiration

The rally attempt remains a work in progress, and it’s difficult to make an imminent bullish case for a push back to new highs, given the progress off the lows from Monday.

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