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Crude Oil and Emerging Markets have experienced several important highs and lows near the same time over the past 20-years.

Both peaked at the same time in 2008 and each declined over 60%.

They both peaked again in 2014 and declined over 40% each.

Crude oil is testing 13-year falling resistance and Emerging markets (EEM) are testing 2017 highs at the same time at each (1).

At this time, these tests come into play as resistance.

How they handle these levels will send investors an important message about inflation and interest rates!

If both would break out at each (1), look for Energy and Emerging Market stocks to move much higher.

In my humble opinion, we haven’t seen this important of a price test for each in years and years.