Here is the updated chart to my publication from last year.
Once again, we can see that as crude oil tumbles, it leads to stock market selling but then that zone of selling becomes important support for future setbacks to hold.
In other words, lower crude oil prices are BULLISH for stock market prices.
The 76% decline in crude oil prices starting in 2013 through February 2016 created a selloff to 15450 and the zone from 18175-15,450 became the accumulation zone, which was indeed tested after the November 8th US Presidential election.
Please refer to my previous publication.
You can see the 56% correction in 2001 which didn't have the same impact on the overall market, but we were imploding from 9/11 and from the internet bubble collapse. But either way, the pattern is a 60% decline in crude oil triggering the setup.
Cheers.
Tim
11:57PM EST March 29, 2017