S&P 500 is seen needing commodity help to solidify rally

• inflation gauge = ratio between Brent crude oil and gold  (8-month chart https://schrts.co/qYpTPXbh)   (https://stockcharts.com/h-sc/ui?s=USO%3AGLD&p=D&yr=0&mn=8&dy=0&id=p83486426733)

 U.S. stocks can use some help from commodities for their six-week rally to be “on solid ground,” according to Barrry B. Bannister, Stifel Nicolaus & Co.’s head of institutional equity strategy. Bannister compared the S&P 500 Index with the ratio between Brent crude oil and gold, which he cited as an inflation gauge, in a report Wednesday.

 

The ratio fell eight weeks ago to its lowest level since Brent futures began trading in 1988 and then dropped as much as 57% more through Thursday, according to data compiled by Bloomberg. Rebounds in the oil-gold ratio led to S&P 500 lows in 2002, 2009 and 2016, Bannister wrote.