This is a bit of a stretch but a comparison of the current price of Crude oil futures and the Dow Industrials from 1987 would indicate that crude is getting a bit extended.
The following shows a daily chart of crude oil futures hitting a DeMark Sequential 13 count. After an already strong run higher, Crude has gone parabolic in the past two weeks. This type of advance is not sustainable and often leads to a price collapse.
The Dow Industrials in 1987 traced out a similar parabolic pattern on the final run to the highs and began rolling over shortly after hitting a DeMark 13.
In addition, the following chart indicates that the weekly chart of crude futures have also hit a DeMark 13, although the price has run a bit further than I would like.
All in all, it looks like crude could begin a multi-week process of rolling over after its astounding run. If you bet against crude, remember to use a reasonable stop ore wait until price breaks down. Parabolic moves can often run much further than you imagine.
