Today's price action will be a key to shaping the direction of stocks through the end of the year. The S&P 500 is set to open below the bottom of the upward trend line that has been in place since the August lows. In recent days, the index has also broken below key support levels formed from the July highs.
If traders don't turn things around and bid the market higher today, it could be the start of a downward or at least sideways trading for the remainder of earnings season.
The price of oil, on the other hand, has broken above the top of its upward trading channel -- essentially turning parabolic. The commodity is now extremely overbought, making us due for a short-term pullback.