Stocks Have Crude Awakening

We believe that oil prices are quickly approaching an important intermediate-term peak

The stock market pulled back for the second time in three weeks as the major indices react to a spike in crude oil prices and deal with a pile of overhead supply. The S&P 500, DJIA, and Nasdaq are all dropping back toward their recent breakout points, and we think it will be very important for the indices to bounce off of these important support levels. While crude oil is in a very powerful uptrend, we believe that oil prices are quickly approaching an important intermediate-term peak, and believe this may take the temporary lid off of stock prices.

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