Chart of the Day - Thursday, August 18th, 2022

Today’s Chart of the Day was shared by David Keller (@DKellerCMT). From top to bottom you have, Ethereum, the S&P 500, and a ratio of Ethereum vs. Bitcoin. David points out that the Ethereum vs. Bitcoin ratio continues to closely track the S&P 500. Why is this Crypto ratio moving in tandem with the S&P 500?... Who knows for sure, but one could argue that Ethereum is one of the more risky/volatile assets, even more so than Bitcoin. So, if it's outperforming, we're probably in an environment where market participants want to take on more risk. Regardless of why these two are moving together, it's worth paying attention to as long as this relationship exists. It's especially useful given that Crypto markets are open 24/7, which means we can look at Crypto at night and over the weekends to get an idea of what Stocks might do when they open.