S&P500, Oil & Gold aligned with 2008. Deep recession in 2023?

Last week has been without a doubt highlighted by the unexpectedly big drop on the U.S. CPI for October, lifting the market sentiment to one of the strongest 3 day rallies in recent history.

In contrast to this euphoria we want to remind you the relative position of the thre major assets (S&P500, WTI Oil and Gold) compared to 2008. So far S&P500 is trading within a similar pattern as in 2008. A break above its 1D MA200 (orange) and Megaphone can reverse the long term bearish trend.

Oil seems to have started to diverge as it broke above the 1D MA50 (blue), something that didn't happen in 2008, but is still bearish below the 1D MA200.

Gold is also printing a similar pattern to 2008. As you saw this week, the break below the 1D MA200 has caused a strong rebound similar to Q3 2008. A continuation of this rally can basically solidify Gold's status as a safe-haven next year.

Those charts show that unless all three reverse from their 2008 patterns, the financial markets may enter into the most aggressive part of the recession in 2023.



## If you like our free content follow our profile to get more daily ideas. ##

## Comments and likes are greatly appreciated. ##

## Also DONATIONS through TradingView coins help our cause of increasing the daily ideas put here for free and reach out more traders like you. ##