Moving on we now consider the 2-year chart for oil. We have been rather unsure what to make of oil for some time, but now the picture is becoming clearer. It too is weakening in a similar manner to copper and the broad market. It too broke well below its 200-day moving average on the recent drop and challenged its February lows. While the pattern is not so clear as it is with copper and the S&P500, it too appears to be completing a Head-and-Shoulders top, bouncing now to mark out some kind of Right Shoulder.
The 1-year chart for the S&P/TSX Venture Comp index looks ominous with this index having dropped back to make a low beneath its February low and test support in the vicinity of its 200-day moving average. Having arrived there in a very oversold condition as shown by its MACD indicator it is now bouncing to form what should turn out to be the Right Shoulder of a strongly bearish downsloping Head-and-Shoulders top. This bounce should be utilized as a final opportunity to unload positions and possibly short this market.