The correlation between Crude Oil and the S&P 500 has been rather high over the past 9-months.
Both peaked at the same time in early October, as Crude declined over 40% and the S&P fell nearly 18%.
Both bottomed together near Christmas and both experienced strong counter-trend rallies. Crude has rallied 29% and the S&P is up over 18% since the December lows.
The rally in the S&P has it testing old highs and its 78% Fibonacci retracement level of the 2018 highs and lows, while Crude is testings its November highs.
Weakness to start of the week has Crude attempting to break below very short-term support. Keep a close eye on Crude the next couple of weeks, as it could be predicting the next major move for both at this key price level.
What would be sweet news for Crude Oil and S&P 500 bulls? Both break above these resistance levels at the same time!