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Is Crude Oil about to follow in the footsteps of the yield on the bell weather bond and break support? The left chart above highlights that the yield on the 30-year bond is breaking down, below a two-year support line.
The right chart highlights that Crude Oil and the yield on the 30-year bond have correlated a little bit over the past couple of years, with the 30-year breaking support.
Could crude oil follow yields and break lower? If they both break support and head lower, what would the macro message be coming from them? If Crude would break 5-year support, traders would expressing some concern about the prospects of global growth.
At this time support is support until broken…..Stay tuned here, some important macro messages could come from crude’s next big move at support.