Source:
https://mrtopstep.com/market-watch-sp-5 ... ll-street/
Market Watch – The S&P 500 and DAX are parting ways and that could be bad for Wall Street
Negative correlation has preceded significant selloffs a number of times in the past 20 years
While U.S. and German stocks have tended to move in tandem in the past, there has been a disruption recently that could be a sign of trouble for Wall Street.
For the first time since mid-2015, the 50-day correlation between the S&PSPX, +0.03% and DAX 30 DAX, -0.37% has gone negative, points out MKM Partner’s Jonathan Krinsky, in a note to clients. He said this has only happened five times in the last 20 years — June 1998, Feb. 2000, October 2005, August 2015 and April 2015.
“Four of the five occurrences preceded medium to large market pullbacks (‘98, ‘00, ‘14, ‘15), with ‘00 preceding the end of the tech bubble and ‘15 preceding the August flash crash,” said Krinsky.