Crude Oil Has the Stock Market by the, um, Nose

by Rick Ackerman

Crude oil prices have been leading the stock market by the nose for quite a while and are likely to continue to do so for the foreseeable future. That’s the way it goes when the global banking system is hocked to the ears with energy loans Since I’ve just readjusted my price target upward for the July NYMEX oil contract, that will have bullish implications for the broad averages. The oil target is about 5.3% above the previous one, leaving plenty of room for a rally. However, because I have been expecting oil’s dead-cat bounce from around $27 to sputter out in the low $50s, we should keep close tabs on the charts, since shares could be expected to top out when July Crude hits its mark. For the precise number, a high-confidence Hidden Pivot resistance, check out the tout for July Crude below.

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