Below compares the prices of Crude Oil and the New York Stock Exchange Index (NYSE) over the past couple of years.
Once Crude peaked in 2014, the NYSE Index make little upward movement after than, even though the trend for the prior few years was clearly up.
Over the past year (black rectangle box), the correlation has been quite high.
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Are Crude Oil and the NYSE, both creating an inverse reversal pattern? Regardless of this potential, both are facing last falls highs at (1).
If the correlation remains high between the two, Crude Oil needs to break above resistance, to send a message that would suggest, it keeps moving higher. With the majority of global stock markets facing falling resistance levels, what Crude does at resistance, could have a huge influence on stocks.
For the near term, should stock investors “follow the price of Crude Oil closely?” We humbly have felt this way for months and have been keeping our members informed of this pattern each week.