S&P 500 (top), WTI Crude Oil
The S&P 500 and crude oil have been highly correlated over the past 10 months. Both peaked together at the same time around the first of October at (1) and both bottomed together near Christmas at each (2).
The ole chicken-or-the-egg question comes to mind, as I’m not sure which one is leading the other. The correlation is that tight.
The rally off the lows near Christmas has each very near falling resistance at each (3).
If the rallies are to continue for both products, S&P 500 and crude bulls would love to see breakouts at (3). The bullish case could falter if both experience selling pressure at this potential zone of resistance.