SPX Versus Oil Price Chart

The SPX is shown in blue and the oil price in green over the last couple years, moving in lock-step. The oil price appears to lead the broad market at each turn by a hair, but this is nothing to hang your hat on.  Note that the SPX price is over three times the distance above the zero line as compared to the oil price below the zero line. The entity that deviates farthest from the centerline will correct the most, compared to the other entity.  Thus, the SPX would be expected to correct in a higher percentage down move as compared to the pull back in oil. Most importantly, to keep things simple, watch oil price to determine broad market direction.