Transports are Not Responding to Crude Crash

posted in: crude oil, economy | 0

From Mark Hulbert:

Transports_vs._Crude_oil

The Dow Transports haven’t gone anywhere during the past couple of months even as crude oil has fallen a further 20%+ in the same time period. This is a very interesting phenomenon given that one would think that a decline in the #1 input cost for the transport sector would be a positive. However, this shift could be messaging that the recent plunge in crude is a bearish omen for the economy as a whole. Regardless, this correlation between crude oil and the transports is something to keep a close eye on over the coming months.