Live 20 minutes before the US market close gold futures are maintaining the support hold vs. the S&P 500. Until this ratio gets over the moving averages I’ll have a level of caution on it, but the possibility that the false breakdown was the low is still in play.
Gold/SPX is a key macro indicator and it is also a key indicator for the gold stock sector, which has corrected vs. SPX but maintains leadership. For things to remain normal to a bullish gold stock view we’d want to see the HUI/SPX ratio hold the up trending SMA 200.
