Crude Oil About To Drop 50% And Take Stocks With It?

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Crude Oil created its second top back in October of 2018 at (1) and then it proceeded to decline nearly 50%.

What did the S&P do while Crude declined 50%it fell nearly 20% in less than 90-days.

The above chart was shared on 1//8/2000, suggesting that Crude Oil looked to be creating a “Double Top” at (3) and stocks should get hit hard again.

Below is an update of the Crude Oil Chart from above:

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Are the concerns over the Virus important? You bet.

Is the current weakness in the markets solely based upon the virus news? I don’t think so.

Crude Oil has been creating lower highs for the past 18-months, creating a bearish/negative divergence with stocks.

Is Crude Oil the only economically sensitive asset that has been suggesting the global economy is going to slow down?

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IIn my humble opinion, these economically sensitive assets have been sending an important macro message to stocks for nearly 18-months, that the majority of investors have chosen to ignore.

Disclosure: Sign up for Chris's Kimble Charting Solutions' email alerts--click here.

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