Crude Oil On Cusp Of 7th-Largest Intraday Reversal
Late last year, we went over a handful of signs in crude oil that had only been seen at prior long-term lows. Sentiment measures were at or near historic extremes and the kind of price activity witnessed was typically seen near long-term inflection points.
Going into today's session, expectations were ugly given weekend headlines and crude oil showed a massive loss to start the session. It's on the cusp of fully recovering.
Since 1983, today's nearly 7% reversal would count among the largest-ever intraday come-backs. There were only 15 other times it managed to reverse a 5% intraday decline to close in positive territory.
As we can see from the chart and table below, once again this is the kind of price activity that typically (but not always) occurred near long-term inflection points.