The chart below was published on dshort.com a week ago, reflecting that Crude Oil and the 500 index have been very correlated over the past 4 years. (see post here)
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Crude Oil has created a series of lower highs over the past 2 years….should the 500 index be concerned about this channel/price action? See below for an update.
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Does Crude Oil lead the 500 index or is it the other way around? I will let you answer that one. The top chart does reflect that the 500 index and Crude oil have been high degree of correlation over the past few years.
The series of lower highs/falling channel could be sending a key global message. The updated chart reflects that Crude Oil has broken support of a bearish rising wedge this past week.
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