GLD / SPY has been pretty accurate for TA predicting large moves, bottoms in the market & tops in the market (using traditional support & resistance the bottom was put in to the penny on a resistance line). With this inverse correlation and the forming of a wedge we’re gonna be in for a HUGE move near or after the election, best to get your positions in sooner...
This chart is honestly very interesting and I wish I would have seen it before during normal market growth. As GLD/SPY hit the previous swing highs was March 23rd, the day the market began its collapse.
I'd keep this within your tool box of fancy shmancy charts for use in the future ;).
The long term outperformance of equities over gold that started after the 2008 crisis lost steam at the end of 2018, an amazing 10 year run. Looking at the SP500 to Gold ratio if we break SPY/GLD sub 2 consistently, we could be looking at a new regime : while the current crisis and ensuing recession play out, gold may outperform equities substantially.
A great way to monitor the stock market is to divide it it by gold.
Since the Presidential election on Nov 8, 2016, the stock market advanced 46% against gold into the October 2018 high, but since then has tumbled back down to only a 15% gain over the past 3+ years.
Violent setbacks are clearly evident on this chart and even reveals more of a triangle...