I showed a 3-year comparison of price action on the SPX to the Commodities Index (CRX) in my post of April 5th.
In it, I mentioned the correlation between the two and the instances where, mainly, the CRX would lead an ultimate drop in equities, by putting in negative price divergence before the SPX.
The following chart shows that, since the time of my post, the CRX has put in another lower swing low and has not yet made a higher swing high in its present (large) negative divergence that begins from February of this year, while the SPX has continued its meteoric climb.
If commodities continue their weakness and equities do not follow suit, I will wonder what has changed since February to cause this disconnect between the two.
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