The following is a brief excerpt from this morning’s Keys To this Week report for the US stock market, one of many different reports that Asbury Research subscribers receive throughout the month.
Keys To This Week includes 10 key market factors that are most likely to influence the US stock market over the next one to several weeks. Key #9 of 10 of this week’s report, with the accompanying chart, appears below.
Key #9 of 10> Intermarket Relationships: Crude Oil Prices. NEAR TERM BULLISH.
Chart 5 below shows that spot West Texas Intermediate crude oil prices tested and rebounded last week from underlying support at their $28.10 per barrel December 1996 high, trading as low as $28.35 before finishing the week at $33.67. The tight positive correlation between oil prices and the S&P 500 since December suggests that as long as $28.10 holds as support, last week’s US stock market rally is likely to continue.