BarroMetrics Views: Relative Strength
Just off the plane from Singapore so I”ll keep this short and sweet.
But first – a Happy Memorial Day’s Hol to all my US readers.
Figure 1 shows a comparison chart of Gold, the S&P, Crude Oil and the DX. What is clear is there is a direct correlation between Gold, S&P and Crude Oil. In turn these are inversely correlated to the DX.
There is another point that is worth noting. Looking at the arrows we see that Gold is the strongest of the 3: Gold has broken its reaction high (arrow point in Figure 1) whereas S&P and Crude have still to break above theirs. And given that I see the S&P forming a 5-d Diagonal Terminal Forecasting Pattern, the key question in my mind is whether Gold will follow suit. Time will tell.