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The Oil / Gold Ratio and SP500: A Bearish Mix ?
August 8 ( From Stockcharts )
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In these uncertain times, it is interesting to look the behavior of the Oil ( in our study, the WTI ) and the Gold in relation to the Mighty SP500.
That ratio measure between the real economy and fear factor...
That ratio was at level on June 17 not reached since July 2013, the highest of the past 3 years. A bearish mix since July 25.
As shown by the chart below, this ratio tells that the economy commodity ( oil ) compare to the fear factor ( gold ) is turning risk off slightly since the 7 DMA turned south th on July 25 2014 as shown
by the chart below...
Observe the break down on the support trendline for the Mighty SP500.
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The Oil / Gold Ratio and SP500: A Bearish Mix ? $SPY, $SPX, $ES_F, $OIL, $USO, $GLD, $GC_F
Oil : WTI over Gold ( Dots - Top Panel )
7 DMA ( Blue Line )
SP500 Index ( Bottom Panel )