The chart of the S&P futures divided by brent oil futures looks like it wants to run.
The question then becomes, if this breaks to the upside, that means the S&P is either gaining or retaining value better than oil. In the event of a market meltdown, it seems that oil would take a bad hit. In the case of a bull rally, then the S&P would be gaining faster than oil.
Same logic applies to the inverse.
If the previous oil chart i posted plays out, there's a chance oil prices go down a good bit from here. That would make sense considering the recovery has slowed, Libya is starting to pump oil and there's only so much storage to hide the damage from the pandemic.
Let's hope oil isn't the canary in the coal mine for commodities.
Brent oil vs DBC, USCI:
Lumber already front ran the party
The question then becomes, if this breaks to the upside, that means the S&P is either gaining or retaining value better than oil. In the event of a market meltdown, it seems that oil would take a bad hit. In the case of a bull rally, then the S&P would be gaining faster than oil.
Same logic applies to the inverse.
Let's hope oil isn't the canary in the coal mine for commodities.
Brent oil vs DBC, USCI:
Lumber already front ran the party
