What Would a Rally in Crude Mean for the Market?
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Does it seem odd that a rally in Crude oil could be good for the economy? Would a rally in Crude Oil at this point cause the S&P 500 to push higher in price?
Crude Oil and the S&P 500 have a fairly high correlation the past few years (see my 500/Crude Oil correlation).
Odds are pretty high that lower gas prices at the pump are easier on the pocket book! At the same time one cannot overlook that lower crude prices can seem to go along with a weaker economy.... If history is a guide, in the short run, the S&P 500 could benefit from a rally in Crude oil prices.
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