There aren't many one-punch knockouts
Today's data on oil wasn't particularly bearish. Yes, the US added 8.2 million barrels of oil but it was largely offset by draws in gasoline and distillates. In addition, yesterday's API numbers were more bearish so the news was largely priced in.
Instead, it looks more like today's drop was more about a series of negative headlines. For instance, it was the 9th consecutive week of oil builds and the 11th in the past 12 weeks.
Even the toughest of heavyweight markets can't withstand a nine-punch combo.
The second part of a collapse is gravity.
A market -- or a boxer -- on the way down might try to catch his balance or grab a rope. Occasionally it works but the ropes and technical support levels are slippery and a stumble is just a signal for opponents to unleash another flurry.
