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The S&P 500 and the CRX index have had a pretty decent correlation over the past few years. Their tops and bottoms have taken place close to the same time frames. The S&P 500 finds itself around 3% above last Aprils highs, the CRX is truely reflecting relative weakness, as it is 18% lower than its April 2011 highs!
The above weekly chart reflects that the 61% Fib retacement level looks to have stopped the CRX rally and now the CRX is breaking support at (1).
We are getting “Mixed Performance Numbers” when you compare the S&P 500 to the CRX index. Which index do you feel is sending the correct signal about the economy?
T… Great comment agree that commodities represent a global snap shot. This is why I like keeping an eye on them, per a global snapshot.
Should the CRX go down a good deal, hard to believe the BRIC won’t be put under downside pressure.
Thanks T for your viewership and this quality comment,
What economy are you asking about? The global economy or the US economy?
Commodities are global.
Wall Street is selling the theory the US can decouple……I disagree and its starting to show up in the disappointing data.
The same arguments were made in 2008 about emerging markets and we know how that ended.
Also take a look at the shanghai index seems to have broken a major support line