Is Crude Oil Sending a Bearish Message to the Stock Market?

crude oil correlation s&p 500 index topping bearish chart analysis july 19

Crude Oil Prices versus S&P 500 Index Chart

Crude Oil (NYSEARCA: USO) and the S&P 500 Index (INDEXSP: .INX) have peaked and bottomed together several times in the past 9 months. See points (1) and (2) on the chart above.

In summary, the correlation between Oil and the stock market has been quite interesting and demands investors attention.

Could a bearish turn lower be on the way for U.S. stocks?

Crude Oil has been creating lower highs of late and is breaking price support at (3).

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If the correlation remains the same, Crude Oil may very well be sending a bearish message to stocks.

Tricky spot for active investors – careful here.

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