The S&P futures rallied 28.25 handles from their overnight low of 1864.50 by 11 AM CT Tuesday, only to sell off and retest the low before a closing rally that left the Emini S&P futures (ESZ14:CME) up 9.25 handles. Crude oil closed down $3.90/bbl, a sharp continuation of a downtrend that has oil down $10 in as many days. While we don’t take the oversimplified view that the stock market tracks crude, or even bonds or gold, we do notice when the factors causing crude to drop so dramatically are also factors that could affect stocks.
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Crude oil instability, earnings overshadow stocks