In a post this morning Steve Saville flips the SPX/Gold (Amigo #1) ratio over and applies the 200 week simple moving average to it (Gold/SPX). Posted over at Biiwii is the full article, which I recommend:
No Confirmation of a Gold Bull Market, Yet
“That’s where the gold/SPX ratio comes in. Gold and the world’s most important equity index are effectively at opposite ends of the ‘investment seesaw’. Due to their respective natures, if one is in a long-term bull market then the other must be in a long-term bear market. In multi-year periods when they are both trending upward in dollar terms it means that the dollar is in a powerful bear market, not that gold and the SPX are simultaneously in bull markets.”
Personally, I like to view markets and market relationships from as many different angles as possible. So this article was helpful to me, in that it helps confirm what we’ve already been saying in NFTRH using a few other technical metrics (one of which is an HUI/Gold ratio still locked below its daily SMA 200).
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