Crude Oil Rally Stalling? Stock Market Bulls Hope Not

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by Kimble Charting

The 4-month rally has been broad-based, with other risk-on assets like crude oil rallying in stride.

This isn’t a surprise, as crude oil will often perform in line when the economy is on track.

Currently, the correlation between stocks and crude oil remains up.

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But if crude doesn’t get its act together, it may become a headwind for stocks. See the chart below for more color.

Last week, Crude Oil created a large bearish reversal pattern while testing its 61.8% Fibonacci level at (1).

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In my humble opinion, stocks would receive a short-term negative message if crude oil turns weak here. Stay tuned!

This article was first written for See It Markets.com. To see original post CLICK HERE.

 

 

 

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