Bloomberg Market Wrap 5/24: Beware the Divergence, Oil Prices

The video discusses market volatility, focusing on the S&P 500 and VIX trends since 2017. It highlights the reconvergence patterns of these indices and their historical lows. The analysis extends to WTI crude oil, noting its significant weekly loss and the impact on energy stocks. The discussion also touches on the concerns of rising inventory levels and unresolved US-China tensions affecting market demand.

What historical trend is observed between the S&P 500 and the VIX during market rallies?

• They move in opposite directions.

• They converge at high volatility levels.

• They diverge significantly.

• They converge at low volatility levels.

What does the current low level of the VIX suggest about its future movement?

• It indicates a market crash is imminent.

• It will remain low indefinitely.

• It may reconverge with the S&P 500.

• It will diverge further from the S&P 500.

What was a significant factor in WTI crude oil's recent price drop?

• A new trade agreement with the EU.

• Rising inventory levels in the US.

• Increased demand from China.

• A decrease in production costs.

How did WTI crude oil's price movement compare to its 100-day moving average?

• It fell below the average for the first time since March.

• It stayed above the average.

• It matched the average exactly.

• It rose significantly above the average.

What geopolitical factor is affecting the demand outlook for crude oil?

• Tensions between the US and China.

• A new trade deal with Canada.

• Peace talks in the Middle East.

• An alliance with Russia.