WTI Crude Plunges Back Below $56, Nasdaq Red On Gilead Weakness

Submitted by Tyler Durden on 12/22/2014 09:04 -0500

• Crude
 
• NASDAQ
 
• Nasdaq 100
 
• Technical Analysis

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It all looked so rosy just a few short hours ago. WTI crude has slipped from over $58.50 (once again testing that upper band of resistance) to back below $56 and down almost 2% from Friday's close (not stabilizing). While the S&P and Dow (futures) remain green, the Nasdaq has tumbled into the red on the heels of Gilead's weakness (the 6th largest name in the Nasdaq 100).

WTI crude breaks below $56...

BofA thinks the weakness will continue...

HFs [specs] bought Crude contracts at the strongest weekly pace in June 2014 since the selloff in crude started. However, this was only the fifth week of buying in past 25 weeks.

Technical analysis indicates thatfor now strength of downtrend suggests remaining bearish.  

MAA also suggests trend remains bearish.

And Gilead... (down 11%)

Is dragging Nasdaq lower...

As the S&P and oil remain decoupled...

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