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Today's pullback -- what do the charts say?

We all know why we had a pullback today. It was the slide in price of oil which I believe was primarily due to shocking news from the refiner powerhouse, Valero and also the rally in the U.S. dollar. Valero's problem were related to demand issues and I really don't think that the rally in oil prices thus far had anything to do with the demand side -- it had to do with the constriction in the supply side due to massive capital cutbacks and what it portends for future oil supply/demand dynamics. The rally in the U.S. dollar meant that the so-called reflation trades suffered. Commodities, oil, gold and silver -- all took a hit. The charts suffered no major damage. If you could peer over my shoulders and look at my daily charts for Oil, Gold, Commodities and major market indexes -- it looks like another ho-hum day in the markets. Even when the markets were at their worst the charts did not indicate any major breakdown and in fact a normal orderly pullback.

One day's market action does not reverse the trend. As I have always said if there is a reversal of the trend this blog will be the first place you will find that out! For those with courage and conviction and those who believe in the power of the charts today would have been a day to reload on their favorite oil, commodity, gold and silver stocks.