By Markus Heitkoetter
Stocks had a gloomy Monday with all major indices ending the day in negative territory after Crude Oil dropped over 4%. Today’s close of $63.10 brings Crude Oil back to a level not seen in 5 years.
At one point the drop in Crude Oil helped stocks and was welcomed by investors. After all, lower energy prices means more money for consumers to spend elsewhere. But the bigger the drop, the greater the concern that we’re seeing signs of a global economic slowdown. A slowdown that could continue to put pressure on U.S. stocks.
The S&P ended the session 15 points lower at 2060.31. After trading at all-time highs on Friday, all it took was a single day of trading to erase December’s gains. Today’s move was the largest drop since 15th Oct 2014.
The DOW lost 106 points and closed at 17852.48. Today’s triple digit loss was the first triple digit loss since October.
Tesla Motors (TSLA) felt the pressure of lower Crude Oil today and mirrored Crude’s 4% loss. With today’s move lower TSLA is approaching a Power Crossover Method ADR Profit Target at $209.22.
A Power Crossover Method Sell Signal was identified on 1st Dec 2014 .