Equipment Check:
When one sees outperformance do not question it. Simply respect it. PRICE action does not lie and looking for reasons for why something is happening is often fruitless since you will never really know, and if you do the market may be looking to PRICE in something else. This could be said about the firm behavior in the oil equipment and services space. The OIH has been due for a prudent pause following a robust move off 200 last fall and that signal may have come today with a bearish engulfing candle. Its last bearish engulfing candle was recorded on 12/5 and that led to a swift 10% decline before the ETF resumed its uptrend. That was during the week ending 12/9 which slumped more than 12%, but bears were unable to see any follow-through lower and we are now on a 5-week winning streak. Let the leaders within show you the way as SLB is now pulling back into a cup base pivot of 55.95 taken out on 1/10. These names were due for a pullback but bulls want to see it occur in a somewhat orderly fashion, unlike todays volatile conduct.