CRB index dramatically underperforming the SPX, is it China?

I highlighted this morning the importance of China’s CPI figure tonight in light of the possibility of an interest rate hike at some point in China following their attempt to cool inflation pressures and lending growth. With regards to the relentless US equity market rally where the SPX is just 4 pts from its Jan high, one asset class has dramatically lagged and that is commodities as the CRB index is 6% below its Jan high and is back to where it was 3 weeks ago. Due to China’s voracious appetite for commodities as we all know, the relationship of late is not likely a coincidence. Gold in particular is likely being impacted by China’s talk that they aren’t a gold bug at these levels.

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