The use of correlation has been used in speculation for 100's of years, no matter if its horse racing, bird racing or the stock market. While it is working it has the speculators attention.
The three charts below review correlations between the NYSE 52 Week high low index, crude oil and previous market patterns of the Dow Jones index. The three correlations suggest that a market dip is due in 2014, how deep is any ones guess. The NYSE is made up of 2000 stocks unlike the INDU (only 30) or the SP500 (only 500) and as you can see a massive double top is in formation. The NYSE is a better representation of equity investing and should be watched closely.
NYSE 52 Week correlation
and crude oil correlation
and correlation to 1800s Dow Jones
Investing Quote...
"My satisfaction always came from beating the market, solving the puzzle. The money was the reward, but it was not the main reason I loved the market. The stock market is the greatest, most complex puzzle ever invented - and it pays the biggest jackpot...it was never the money that drove me. It was the game, solving the puzzle, beating the market that had confused and confounded the greatest minds in history. For me, that passion, the juice, the exhilaration was in beating the game, a game that was a living dynamic riddle" ~ Jesse Livermore
"The time of maximum pessimism is the best time to buy and the time of maximum optimism is the best time to sell" ~ John Templeton