Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
It has been interesting how in this most recent rally we have not seen much participation out of key commodities – the move up has been centered in equities which is different than most of the rallies since 2009 when the two groups went together. That said, we are starting to see some life in oil. I am charting the USO ETF below rather than West Crude Intermediate as that is not updated on stockcharts.com in real time. Shorter term a move up in oil is normally good for the market with so many oil companies out there, but longer term of course higher oil feeds into all sorts of input costs pressuring other parts of the market, along with the consumer. Just the beginning of a move today and it could fail in the near term but one area to keep an eye on if this becomes something with more legs to it.
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