CLICK ON CHART TO ENLARGE

The chart above reflects that Crude Oil and the S&P 500 have been moving in Sync for the past couple of years (hitting highs and lows very close to the same time). Crude Oil has been contained by this multi-year flag pattern and each time its hit the top of the flag pattern Crude and the 500 index have taken a pause.

Crude Oil is now nearing the top of the flag pattern.  Does Crude need to break this pattern, on its way up to $100 per barrel for the 500 index to break above its 2007 highs? 

The 500 index has benefited from higher Crude oil and odds are high a breakout of Crude would be beneficial for the broad market.

Stay tuned to see “if its different this time!”

 

Get All of Our Weekly Research

Kimble Charting Solutions’ weekly combo lets you save on all of our weekly research

Learn More