Stagflation?

I am no economist, but if you look at the relationship between Crude Oil Prices and the 10-Year Treasury Note there was a fundamental shift over the course of 2007. The market shrugged this off until peaking in October 2007, but there has been no indication from this relationship that things will be changing any time soon.

Will this mean more bad news for the markets? Hopeful bulls looking for rally targets may find indices 200-day MAs, rather than new highs, best bets forward.