Ominous Stock Market Correlation

The 60-day correlation between SPY and QQQ ETFs has plunged near pre-dotcom crash and below pre-2007 top levels.

Below is a chart of the 0-lag, 60-day correlation between SPY and QQQ.

Before the 2007 top, the correlation reached a low level of about 0.75. Levels between 0.65 and 0.58 were reached before the dot com crash.

Caveat lector (let the reader beware)

Click here to read the rest of the article. Article originally published in Price Action Lab Blog.

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