When Crude Oil Tumbles 60%... stocks go UP.
Updated
Here is the updated chart to my publication from last year.
Once again, we can see that as crude oil tumbles, it leads to stock market selling but then that zone of selling becomes important support for future setbacks to hold.
In other words, lower crude oil prices are BULLISH for stock market prices.
The 76% decline in crude oil prices starting in 2013 through February 2016 created a selloff to 15450 and the zone from 18175-15,450 became the accumulation zone, which was indeed tested after the November 8th US Presidential election.
Please refer to my previous publication.
You can see the 56% correction in 2001 which didn't have the same impact on the overall market, but we were imploding from 9/11 and from the internet bubble collapse. But either way, the pattern is a 60% decline in crude oil triggering the setup.
Cheers.
Tim
11:57PM EST March 29, 2017
Once again, we can see that as crude oil tumbles, it leads to stock market selling but then that zone of selling becomes important support for future setbacks to hold.
In other words, lower crude oil prices are BULLISH for stock market prices.
The 76% decline in crude oil prices starting in 2013 through February 2016 created a selloff to 15450 and the zone from 18175-15,450 became the accumulation zone, which was indeed tested after the November 8th US Presidential election.
Please refer to my previous publication.
You can see the 56% correction in 2001 which didn't have the same impact on the overall market, but we were imploding from 9/11 and from the internet bubble collapse. But either way, the pattern is a 60% decline in crude oil triggering the setup.
Cheers.
Tim
11:57PM EST March 29, 2017
Comment
For all of the bears out there that only see everything in a negative way and predict endless crashes, try to look over my research and see that things aren't so bad.Comment
I can keep reading this each week to remind myself to remember these price levels. The next time there is a signal I will post an update to this chart so that if you "FOLLOW" me you too will get the update that we have fallen to an important support level from a "CRUDE OIL BOTTOM". April 27, 2017 8:02PM EST
Comment
The bullish call for stocks based on the drop in crude oil has panned out in a big way. Let's review here.
The rally in crude oil may be setting up some weakness in stock prices going forward, but let me update my research and publish it.
Tim September 3, 2018
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