Markets have been extremely volatile and rangebound in recent months, and the latest geopolitical escalation in the Middle East has only added to the uncertainty.
With the Strait of Hormuz effectively shut down and oil tankers avoiding the region, crude oil prices have surged in just a matter of days. On a daily chart, the move looks dramatic – the kind of price spike that normally sends shockwaves through financial markets.
But when you zoom out, the story becomes more interesting.
On the longer-term monthly chart, crude oil is trading near the same levels it reached back in 2006, putting the recent surge into a very different perspective.
In this new segment, Todd’s Technical Take, Todd Gordon examines the broader technical landscape across equities, interest rates, currencies, and commodities. He looks at historical wartime market behavior, the ongoing five-month trading range in stocks, intermarket relationships between oil, rates, and the dollar, and what the technicals may be signaling for the months ahead.
Despite the intensity of recent events, several key indicators suggest the market reaction has actually been relatively contained.
The question now is whether this prolonged range in equities is setting up for the next major move.
Watch the full update as Todd walks through the charts and explains how he’s interpreting the current market environment.
