Tonights Correlation POST S&P downgrade
The chart on the left is a 1 min showing crude oil, ES futures, nasdaq futures and Gold.
Gold punched a new high over 1750 as ES futures broke down below 1180, touching 1077 as the NIKKEI pushed to lows of over 300 points. The dow was off over 300 points the last few minutes
Notice the channel the NDX is trading in, clearly over the 2000 level there are buy stops… gold has now a this writing pushed over 1756 as Asia selling intensifies … so much for mid day lull…
As for crude oil goes, the low this overnight session is 75.71 as it fell off the 80 a BBL ledge with conviction.. trading down at one point over 6%. As far as historically correlations go crude usually converges with the equity index in regards to % moves. index at this point are only down around 3 percent and crude is off 5.21 trading with a 77handle.
Watch for sell stops under 1077 lows… as well as 1972.25 in the NDX.