Chart of the Week: S&P 500 vs. Continuous Crude Oil Contract

This chart helps visually highlight the chart we just displayed above and hammer home the point that the next move in crude from its support should dictate near term market direction.

S&P 500 vs. Continuous Crude Oil Contract    
click for larger chart


Source: Technimentals

As this layover chart shows crude and the S&P have tended to remain inversely related. When crude scored its recent peak (black arrow) the S&P was setting a trough (blue arrow) and as crude continued to fall the S&P continued to rally.

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Quote of the Day:

“Whoever wants to reach a distant goal must take many small steps.” 

Helmut Schmidt, German Chancellor

What's been said:

Discussions found on the web:
  1. I Am Adam Smith commented on Nov 22


    Barry L. Ritholtz’s blog, the Big Picture is a great read for insight on the markets. I’ve always understood that the price of oil is really important in valuing stocks, but never knew how tightly correlated the price of oil and the market is. Here’s a…

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