Written by Gary

The afternoon markets drifted fractionally higher as the US dollar climbed back up into the important resistance zone that it broke out of once early this morning. WTI oil climber into the 48.70 range this afternoon, stopped and then traded sideways in a narrow trading zone until the close. Important to note that Brent traded below 50 for the first time since 2009 at 49.84.

By 4 pm volume remained active, low, as a few investors took on roles as bulls and bears, neither gaining the advantage. The action tomorrow may be again volatile and the bulls are forewarned.

Oil is calling the shots and as we leave today's session behind us, the trend was definitely down. The oil trading pundits feel strongly that we have not seen the last of the decline and to look for 40ish being the bottom. At least that is the thoughts for today's geopolitical stance which could radically change at a moments notice and drive oil down to 10 bucks a barrel – no I am not kidding.

Personally I don't believe it will happen, but then no one was expecting oil to fall as it has – and did! I am in SCO and the trend is my friend. SOXS is back down in the 13 range, time to jump in if you missed it.

Reuters reports the U.S. stocks rallied more than 1 percent for a second day on Thursday, boosted by expectations the U.S. economy will continue to improve and hopes of more aggressive action from the European Central Bank. Which I have SERIOUS doubts it will happen.

Our medium term indicators are leaning towards sell portfolio of non-performers at the close and the session market direction meter is 34 % bullish. We remain mostly conservatively bullish, neutral in other words. Right now now I am getting very concerned any downtrend could get very aggressive in the short-term and any volatility may also promote sudden reversals. The SP500 MACD has turned flat, but remains just above zero at +0.70. I would advise caution in taking any position during this uncertain period and I hope you have returned your ‘dogs' to the pound.