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The above charts can’t help but stir up the question of, “who came first, the chicken or the egg?” Who is leading who here? For the past few years Crude Oil and the S&P 500 have trended together and have hit key highs and lows around the same time window. Of late the 500 index seems to be in the leadership seat.
When looking for short-term clues to the market, Crude is now within 1% of the top of its multi-year pennant pattern which has brought on short-term S&P500 corrections. Watch Crude on a micro basis up here for some short-term ideas of where the 500 index will head!