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Crude oil is sharply higher today on the news of a supply interruption. Over the past year, comparing the continuous crude oil futures prices (in red) and the S&P 500 has often been illuminating. In January 2010, crude oil peaked several weeks ahead of the S&P 500 and then bottomed first in February. In April, crude oil formed lower highs unlike the S&P 500 and also diverged at the July lows. It will be interesting to see if today’s higher crude prices will carry over to stocks.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.
