Gold-Silver Ratio & SPX

An Epic Non-Confirmation in the Making?

If the relief rally brings the SPX back up to the broken neckline at 1260 as expected, I would also expect the party will have broken the Gold-Silver ratio (GSR) back down below its new found support above the 200 day moving average. This would keep the question asked by yesterday's post in play; could there be another leg to the cyclical bull before flame out?

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If however, gold manages to drop less than silver on this stock market rebound and the GSR remains on a breakout by daily chart, it will be a non confirmation of epic proportions against the bulls. That would most likely mean a re-test of the SPX neckline (and those of various other global markets) would be an epic opportunity to get bearish. Like shooting ducks in a barrel even.

I don't expect this dream scenario to come about, but it would be geek heaven for those using the right tools.

Source: https://www.biiwii.blogspot.com

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