Crude Oil--Stock Futures Correlation
A chart showing the correlation between movements in stock futures (S&P) and oil futures over the course of one trading day, Wednesday, July 2, 2008 (chart covers trading day in stock market--9:30 AM to 4:00 PM). Data is percentage move from opening (i.e. 9:30 AM) price. The oil futures line is inverted. This is based on 5 minute price data. I admit to being slightly astonished at how closely stock futures shadowed oil on an intraday basis. Wednesday, July 2, was the day the media talked about U.S. stocks entering bear territory. They seemed to have been led there by the nose by the oil market.
