The coronavirus has caused severe economic uncertainty, as economists are beginning to weigh its effect on economic growth.
This has brought heightened levels of fear into the financial markets, sending both stocks and economically sensitive commodities like Crude Oil cascading lower.
Today Crude Oil futures crashed lower alongside the stock market. We warned about the potential Crude Oil and Stocks to top at the same time (back in January). And oil prices are now nearing levels not seen since 2016.
The crash in prices has sent Crude Oil’s fear index (OVX) spiking higher to all-time highs (2). The prior two spikes occurred near major crude oil price bottoms at (1).
And the latest spike comes as Crude Oil tests its prior price lows from 2016 at (3). Could this turn into a double bottom??? Oil bulls (and stock bulls) sure hope so!!!!