No doubt the Baltic Dry index has had a rough start to 2012, losing over half its value in just the first month of this year.  Is the Baltic Dry index a leading or lagging indicator for the future direction of the S&P 500?

The Baltic decline has caught the attention of many investors of late, judging by the number of posts on the internet recently.  The Baltic doesn’t have the best predictive track record for 500 rallies or declines, as can be seen in the 15 year chart above. 

Of interest or oddly enough… when the Baltic reached the gray price zone above, the 500 index more often than not was closer to a short-term low than high. 

Do you think/feel the Baltic Index is sending a message of confusion or direction?

How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past