SPX/Gold ratio at important cyclical level

The SPX/Gold ratio is currently holding below the 23.6% Fibonacci level of the period during which gold             outperformed US stock markets (July 1999-September 2011).

While this ratio won't tell us the direction of one market by itself, it can help identify potential inflection points. One only has to look at what markets did in January 2014 to see the arbitrage opportunity that can occur between stocks and gold             . As we're approaching the end of the year, this might be something to keep in mind come January.
Thankful for this chart, pretty useful
And what else does it tell you, maybe explaining it more would be beneficial to others, not really following your point the way you wrote the text.
If the resistance level breaks, stocks should continue rallying needless to say. This doesn't mean that gold will keep falling, but it does mean that stocks will allow for better returns. I'm personally more inclined to think that precious metals markets might rebound at the beginning of 2015 like they did last January.
Trance-Man AdrianRaymondFX
Thank you Adrian!
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