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.

U.S. oil is breaking out as Iran war continues. A look at at how past peaks have affected stocks

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.

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