MONDAY MORNING CHARTS

There seems to be a view that this could be a big week with some markets teetering on the edge of making big moves. Probably the one chart that is the most ambiguous is the MLP index chart which continues to move in a sideways channel. The 290 level which has been support except for those few weeks of turmoil last March seems to be holding in here. Also the index seems to be moving in tandem with dollar strength and with the rise in rates. I know that the second one seems counter intuitive but when you lay the short term 10 year chart over the MLP index...they seem to be moving in line. Something to watch.

Meanwhile the dow jones index of oil and gas stocks is looking to do something as it moves with oil..which is down 1.50 this morning and under 126. Last week's low is near 125 and if that goes i think we could see a very fast and hard sell off.

The chart of USO which is a crude proxy could correct to 98 which i think would be close to 120 on the crude contract...i'm making a rough guess here.

The UNG which is the nat gas proxy and has been in an unrelenting uptrend would probably sell off if the rest of energy sells off hard.
Also bear in mind that there is a difference between how the commodities trade and how the stocks trade as they do diverge on some days. But i would think that at least today they should trade in line.

No corporate developements and no upgrades or downgrades this morning at least so far. Stock futures are down as financials are getting hit. Energy is lower across the board.