Note that in the first chart, the S&P500 generally correlates to the price of Oil, although Oil tends to be much more volatile.
Oil’s quick and dramatic price fluctuations can often signal an abrupt change in the overall economic trend.
Which takes us to the second chart…note that Oil has broken below its 20 day moving average. That’s not a good sign, because the 20dma acts as a firm level of support/resistance. However, the price fluctuation hasn’t been intense.
Couple that with the fact that the S&P500 seems to be recovering ground at the end of the daily session and I’d say that the market is acting quite resilient, given the China Tariff drama.
Keep in mind, the S&P500 is only off its record high by about 2.5%. Let’s see how it closes out the week.
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