Oil, Energy: No Signs of a Recovery

Tyler Durden over at Zero Hedge called this a “crap rally”. It was. The dead and dying doubled and tripled as the shorts were forced out.

The media obfuscated this fact by talking about "green shoots of recovery" and "mustard seeds".
A real rally on the back of a real economic recovery would involve commodities in general, but energy specifically.

1) Oil has failed to move higher and now threatens to break down completely. I last mentioned oil in Rising Bear Wedge, Break Down.

2) The Energy Select Sector SPDR (XLE) did not participate in this rally and now threatens to break down completely. XLE is now below both the 20 and 50 day EMAs (blue and red lines). Volume almost disappeared as prices tried weakly to push higher...