Definitions:
The DIVO chart is the dollar index value of oil. It is the value of Brent crude oil corrected for variations in the major currency dollar index (MCDI). The correction formula is (POO X MCDI) � 100. Note the 200 day moving average (Yellow trace) oscillation around DIVO = 26, the value prevalent when the dollar and Euro were last at parity. Also, the 200-day ma excursion below the parity bar is much less in the most recent cycle suggesting that forces holding down the price of oil are weakening. Updated Fridays