GLD/SPY Ratio At 1.0, Been Swing Dancing, When Will Spread Widen and Which Direction

If you look at the GLD/SPY ratio it is at 1.00.  At some point the spread has to widen no?  Or GLD and SPY will be joined at the hip because of a lower $USD (real return).  Look at GLD/SPY charts on multiple time frames with trends and moving averages.

1) The GLD:SPY 1 year chart is in a triangle and near an inflection point, just above the 50 and 200dma.  The GLD has been swing dancing with SPY in a 0.20 range since April, 2009.


2)  The GLD:SPY 3 Year chart is in a long term uptrend but is being squeezed in a symmetrical triangle.  If GLD falls hard, SPY spikes or simply SPY outperforms GLD to the upside / GLD falls harder than SPY on the downside, the ratio could test the August, 2009 bottom at 0.90 (also near uptrend support).  Or GLD/SPY breaks out to upside...  The GLD:SPY Ratio is up 10 fold since the beginning of the recession.  I will look at gold, silver, US Dollar and S&P 500 specifically in next post.  Thoughts?


Charts courtesy of Stockcharts.com

Related Posts

Comments

HTML Comment Box is loading comments...