In my previous post, “CrudeOil To Kill The Market Rally, Economy?”, I analyzed the effect of crude prices on the markets. The charts clearly showed that $70 crude had an effect on the market, and $90 crude tanked it.

At that time, I mentioned that crude oil has broken out of a triangle pattern at around $75, and look to be heading much higher, with price targets around $96 for a 50% fibonacci retracement.

Since that time, crude oil has shot up past $80 per barrel, and has formed my favorite chart pattern of all. A bullish flag. Bullish flags are highly reliable patterns with good price predictability.