In today’s video we are going to take a look at relation ship between Oil (blue) and SPX (black). Followers of fundamentals often argue that lower Oil means higher Indices. Looking at charts, we can see huge correlation between the 2 instruments. We use another dimension correlation in which 2 instruments could be moving in opposite directions for a period of time but still their swings would be correlated. During the past 30 years or so, only during 6 years, Oil and SPX apparently had inverse correlation. Since mid-2014, they may look to be inversely correlated but still we think their swings are correlated. Oil has a floor which is the zero line and hence it’s likely that Indices are consolidating waiting for Oil to find a low and then they could start the next leg higher as per our Elliott Wave analysis.