Since the last post on technical analysis, a trillion dollar bailout happened in Europe and drove the markets wildly higher and have since been pulling back and have a lot of people talking about a double-dip recession. Clearly volatility is high and will continue to be so in the foreseeable future.

The other big news was oil trading below $70 today. Although this would indicate a significant hit to psychological support levels and many people saying it could go as low as $55, they may be forgetting the contract rollover happening soon and the contango widening where the next month’s contract is trading at $73. Oil prices should stay above $60/barrel but it’s quite possible to see continued weakness in oil and this may translate into weaker Canadian stock market prices as well.

Technorati Tags: canadian penny stocks, economy, oil prices, stock market