SPX500/USOIL: Spread is reaching critical mass

This has happened right before the last two crashes, and when the spread closed, a bottom (and a great long opportunity) formed. Watch this closely, the writing is on the wall. I'm holding SPY shorts, as well as oil, for the time being, expecting considerable downside in the short term. I think the catalyst will be on Friday, after NFP solidifies the rate hike fears.
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Check the related ideas to see how technical analysis was used to decipher this top in S&P.
We had the Yen, Nikkei, Gold, S&P/Gold ratio warning us first, then more hints from this spread, Dow/Snp ratio and finally, the drop started in SPY.

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One side had to give, in this case it was oil...looks like more upside is in store for both instruments.

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Looks like this spread will close.

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I'd simply focus on shorting SPX at this point, the long oil position should have been closed already.

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Long oil should be fine for now.