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Crude Oil and the S&P 500 have done a great job of falling in price, at the same time over the past few years. Crude Oil is on support, of its flag/pennant pattern at (1) in the chart below.
Crude oil's near term price action could have a lot to say about the next big move in the S&P 500 index. The 500 index needs Crude Oil to hold right here, so don't lose sight of what Crude Oil does over the next few weeks.
The decline of gas prices recently might be enjoyed at the gas pump, yet I doubt investors like lower values in their 401(k) and other investment accounts.
Portfolio design and where stock values head in the near future could well correlate with where Crude Oil heads over the next few weeks.
A decline in Crude Oil wasn't good earlier this year for stocks (See post here). As mentioned 10 months ago: "Be Careful what you wish for!"
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