The most direct effect of falling Oil is on countries like Russian Australia and yes Canada. So Canada has been making a series of lower tops since FEB that may have gone unnoticed but now it is close to breaking the neckline at 15130 below which a steep drop to 14500 could be on the cards.
US indices are diverging with max weakness in the Nasdaq. The chart attached shows that may remain the case near term and the Nasdaq may continue to form wave 2 up for a while. Wave 3 can be presumed only after the lows break. Till then the Dow is holding out.
Adam Smith Associates offers trade & commodity finance related services & solutions to its domestic and international clients. Views expressed in this article are purely of the author – Mr Rohit Srivastava – a leading technical analyst. Visit www.adamsmith.tv for services offered by Adam Smith Associates Pvt Ltd