Monday, October 29, 2012

Stocks and Oil Diverge

The chart below courtesy of the St Louis Fed but I picked it up at Crossing Wall Street identifies the gap between the S&P 500 return and the price of WTI crude oil.  Obviously crude oil needs to come up, the S&P 500 needs to fall, or a combination of the two.  We would say that it is likely that the S&P 500 could continue to fall.

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