Stock market & crude oil relationship

The recent month-long rally in stocks that started early in February was given a lot of upside momentum from the rising price in crude oil. But when oil stalls, tops and starts another decline, expect the stock market to fall fast and hard.

Market tops: S&P 500 and crude oil conclusion

In short, the stock market and crude oil prices have posted some serious gains in the past month. But both are not showing signs of weakness in terms of price action, buying volume and cycle analysis.

We may see stocks and oil hold up and possibly make minor new highs over the next five to ten sessions but it’s going to be a struggle (choppy market) before we likely see the next market selloff.