Tuesday was a pivotal day for both ES (Emini S&P 500) and oil.
Notice that ES is bumping up against its month-long resistance line, now at 2100, which also represents the upper-boundary of a developing Megaphone-type (potentially) broadening-top formation.
The ability of ES to hold and hurdle 2100 will invalidate the broadening-top formation and will argue for still-higher prices that will fully retest the May 2015 high at 2134.
Conversely, a decline that breaks 2086 will trigger initial sell signals and will lock-in the current rally from 2030.75 to 2100.00 as complete.
As for oil, it has regained its pre-Doha level around $40.50 and has preserved the larger April advance off of the $35.24 low, which my work argues initiated a new upleg that points next to $45.
Only a break below $37.60 will begin to compromise my bullish, near-term outlook for oil.
