economy
U.S. oil is breaking out as Iran war continues. A look at at how past peaks have affected stocks
Katie Stockton of Fairlead Strategies looks at past peaks in oil, and how they've affected equities.
TL;DR
- WTI crude oil prices are rising due to geopolitical uncertainty.
- A monthly MACD buy signal in February suggests a continuation of the up-move in crude oil.
- Historically, crude oil up-cycles have often coincided with weaker performance in the equity market (S&P 500).
- Past oil price peaks have preceded stock market corrections, trading ranges, or bear markets.
- The current breakout in WTI crude oil suggests potential choppy, corrective action for the S&P 500 in the coming months.