Want to Know Where the Stock Market is Headed? Check Out this Chart of Oil Prices.

Oil Prices and Stock Market Directly Correlated

It has been often thought that the stock market drives the price of oil. The chart included here says otherwise (Click to expand chart).

This chart has a few components readers should be aware of.

The red line signifies the ups and downs of prices in oil, but pushed forward into the future. (For the latest on oil prices, check out this chart)

The blue line is the Dow Jones industrial average, weekly (Ticker: $INDU).

The green arrows indicate a “risk on” environment (higher stock prices ahead).

The red arrows indicate points in time it was appropriate to go “risk off” (potential weakness or selloff ahead).

By pushing the volatility of oil prices out in time, we can see that the next point in time traders and investors should take a “risk off” mindset is Spring of 2025.

From there, according to the forecast, November of 2026 will be a period of time to begin going long again and a “risk off” environment takes hold.

If you’re interested in a more detailed and precise forecasts, sign up to our free quarterly TradeTimingPro alert here.

To your success.

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