Market: $CL_F and $ES_F
Chart:
Chart Analysis: As QE 3 pumps stocks and major market indexes higher, oil prices take a turn to the downside. Today’s NinjaTrader Chart of the Day displays the clear divergence we are seeing between the E-Mini S&P 500 Futures ($ES_F) and Oil Futures ($CL_F). The powerful NinjaTrader 7 platform delivers traders the ability to add customizable bar types available for free on the NinjaTrader Support Forum, which is where the light red “Mountain” bar type can be downloaded. The “Mountain” bar type was used to plot the ES ($ES_F) daily prices overlaid by the ($CL_F) Line on Close bar type. We expand our analysis by adding two MACD indicators, one for each instrument allowing us to visualize the widening spread between the ES and CL markets. To add further fuel to a major market rally, cheaper oil prices generally result in an increased bottom line for many companies that are oil dependent, such as rubber and plastic companies. This data suggests a possible increase in the ES and CL spread. Keeping an eye on the differences between oil and major market indexes should be a priority for many traders looking to take advantage of the lower price in fuel. Today’s chart can be created for free using NinjaTrader 7 and FREE end of day data provided by Kinetick.
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