AndyM
Short

Correlation in SPX and Crude - both to resume decline this week

FX:USOIL   Crude Oil (WTI)
427 2 8
HI All,
SPX             and Crude seemed to go in pair for some time now. They went up after a strong decline, traced their corrective structures up, and are getting ready for a decline again.
I estimate both Crude and SPX             still need one minor push up in order to complete the correction. Crude, to possibly go to 52 handle, while SPX             might hit 2040 range in order to have a touchdown with the trading range of May-July.
Both are supposed to decline strongly in the next 6 weeks. Crude is supposed to match or better the 38 low, while SPX             target is 1720-1730.
Watching at the same resistances Andy
Euphoria on it
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I think we will see a rally in the yen and euro, specially if your S&P and Crude scenario is valid (I think along the same lines).
Correlation between Crude and Euro doesn't have any fundamental connection right now, I believe it's a thing of the past, since the driver of the Euro and Yen lately is carry trade unwinding by institutions.
Should be a very exciting couple of quarters ahead of us. :)
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