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Correlation between Crude Oil and the S&P 500 has been very high over the past few years! Both peaked on 9/14/12 and have moved lower since those highs. This morning Crude Oil finds itself on a key support line, dating back to the 2009 lows.
If Crude Oil holds on support at (1) in the above chart, it would be a “Treat” for the broad market!
A failure to hold on support, would get rather “Tricky” for equities as they would move a good deal lower!
“HAPPY HALLOWEEN” everyone!