Crude Oil (NYSEARCA: USO) and the S&P 500 Index (INDEXSP: .INX) have peaked and bottomed together several times in the past 9 months. See points (1) and (2) on the chart above.
In summary, the correlation between Oil and the stock market has been quite interesting and demands investors attention.
Crude Oil has been creating lower highs of late and is breaking price support at (3).
If the correlation remains the same, Crude Oil may very well be sending a bearish message to stocks.
Tricky spot for active investors – careful here.
This article was first written for See It Markets.com. To see the original post CLICK HERE