Is the correlation clear yet?
Forget the talk about the Fed, China and whatever else. Oil and commodities are in charge of the market at the moment.
The Saudi foreign minister is on the wires, saying they do not rule out nuclear bomb if iran gets them, so that's just great, but the market is taking it as more of an off-the-cuff hypothetical, which sounds about right.
What should be clear by this point is that oil is leading the way. WTI crude is down 90-cents to $28.52 after touching $30 just a few hours ago. Every dollar lower in crude makes the host of commodity-exporting economies weaker and it makes defaults among energy companies in the US and elsewhere that much more likely.
The S&P 500 is down 11 points to 1869. The low Friday was 1857.
