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?
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