The S&P 500 and Crude Oil have been highly correlated over the past 10-months. Both peaked together at the same time around the first of October at (1) and both bottomed together near Christmas at each (2).
The ole Chicken or the Egg question comes to mind, as I’m not sure which one is leading the other, with the correlation being this tight.
The rally off the lows near Christmas has each very near falling resistance at each (3).
If the rallies are to continue for both products, S&P 500 and Crude bulls “Would Love” to see breakouts at (3). The bullish case would get a caution message if both experienced selling pressure at this potential resistance zone.
Wishing everyone a “Happy Valentines Day!!!”