ryanabbott

SPX in terms of gold, testing long term trend line

Long
The unprecedented rise in stocks despite worrying earnings from the broad market could have a few explanations. Likely the reason for the "bubble" in the price of the S&P 500 is the intervention of the Fed. By looking at an SPX / GC1! chart, we can see the market with a lack of devaluation of the dollar. The market is in a converging triangle that will determine its course for the next year. My favored outcome is a current rejection of the trend line with the price of gold breaking down and pushing the market higher. Each time the SPX / GC1! price has touched the trend line , it has resulted in a parabolic upward move in the S&p 500 . Thus, I am bullish in the short term for the broad market, and bearish for gold in the short term. These opinions will remain unless the price breaks through the trend line , or until it reaches the top of the forming triangle.
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