Now check out the chart showing IYT's negative correlation with $SPX (the S&P 500 Index) over a 20 day period since 2003, when IYT started trading. Look how the correlation crashed from 1.0 to -0.694 during February. That was a messy separation. And to top things off, the correlation made a new all time low on the chart (since 2003). The lowest it got was -0.615 in 2006. So, was this just a blip? Or was this a warning that oil could start affecting the economy soon.
|IYT, WTIC, SPY, DIA, IWM, QQQ (via stockcharts.com)|
|IYT, IYT, $SPX Correlation (20 days)|