The chart below compares crude oil prices with the NYSE Composite over the past couple of years.
Once crude peaked in 2014, the NYSE made little upward movement, even though the trend for the prior few years was clearly up.
During the past year (black rectangle box), the correlation has been quite high.
Are Crude Oil and the NYSE both creating an inverse reversal pattern? Regardless of the potential, both are facing last fall's highs at (1).
If the correlation remains high between the two, crude oil needs to break above resistance to send a message that would suggest it will continue higher. With the majority of global stock markets facing falling resistance levels, what Crude does at resistance could have a huge influence on stocks.
So should stock investors closely monitor crude oil's near-term price?
In short, 'yes'. That's exactly what they should be doing.