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(12/13/14)
For those that haven't noticed the price of Crude Oil has
dropped 47% since the middle of the year. There is a key support level
around 51 which is the 78.6% Retracement Level from the early 2009 low to the
early 2011 high. If the 78.6% Retracement Level doesn't hold then the next
level of support would be in the mid 30's which coincided with the early 2009
low.
Naturally
the large drop in Oil prices will continue to allow for cheaper gas at the
pump. Currently the national average is around $2.60 for conventional
unleaded gas. However based on the current price of Crude Oil in the upper
50's the average price of conventional unleaded gas should drop back to near the
$2.00 level at some point. If the price of Oil were to eventually
drop back to the mid 30's the national average price of unleaded gas would
probably lower to around the $1.50 range.
As far as the S&P 500 it has dropped back to its 50 Day MA
(green line). If it doesn't hold support along its 50 Day MA early next
week then the next level of support is around 1980 which is the 38.2% Retrace
from 1821 to 2079.
Amateur Investors
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