Stocks, T-Bills And Crude Oil (top to bottom)
Stocks, yields and crude oil have experienced a high degree of correlation since the October highs and each looks to be experiencing a key price test at the same time.
The S&P 500, 10-year yields and crude oil hit their highs at nearly the same time in early October at each (1). After peaking together nearly 16 weeks ago, each declined more than 15%. Counter-trend rallies started happening around Christmas – just one month ago today. The rallies currently have each asset probing very important breakout tests at (2). Stocks, yields and crude bulls would love to see breakouts here.
If support breaks at (3), bulls across the board would receive a negative price message