Crude Oil's Bullish Pattern Is Driving Broad Market

Published 08/15/2016, 01:30 PM
Updated 07/09/2023, 06:31 AM
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Over the past several years, the broad market and crude oil have correlated pretty well and it looks like both of them are creating Large Bullish patterns at the same time.

Crude Oil (red), NYSE Composite

Once crude oil started heading lower in 2014, the NYSE Index struggled to move much higher. In fact, when crude hit lows and rallied, the NYSE did the same.

It's possible that crude oil and the NYSE are both creating bullish inverse Head-and-Shoulders patterns at the same time. But are they also creating a right shoulder at the same time?

Yes.

We started sharing this pattern with members nearly 6 weeks ago at neckline resistance. We think that crude oil's strength will be a positive for stocks around the world.

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