Friday, December 9, 2022

Are S&P 500 And Crude Oil Peaking Together Again?


Crude Oil And S&P 500 Weekly Charts.

Crude Oil And S&P 500 Weekly Charts.

The price of has been an important indicator of the economy for quite some time. When oil is in demand and performing well, the economy likely is. And when oil is not performing well, the economy likely isn’t either.

Taking this one step further, it’s easy to see how crude oil can be a solid indicator of the stock market as well.

Often times, investors receive a bearish or bullish message from this relationship. In today’s chart 2-pack, we illustrate how the relationship between the and the price of crude oil warned investors in 2018 and 2019. It may be warning them again today.

As you can see on the chart, the price of crude oil and the S&P 500 Index peaked around the same time in 2018 and 2019. These reversals lower lead to big declines. More recently, oil tested the underside of major resistance before heading lower to test support at (1). And the S&P 500 created a potential double top at resistance before reversing lower to testing important up-trend support at (1).

Needless to say, it is important that crude oil and the S&P 500 hold support at (1)… or we could see a big selloff. Support remains support until broken!

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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