Gold/S&P Ratio Chart/ Back to Support *PIC*

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The GLD/SPY Ratio chart shows the multi month breakout in July 2011 and then a rally to the Sept 2011 high. Very typical price action after a significant breakout. The last 8 months this relationship has pulled back to the breakout point and is now testing this breakout pt as support. A failure to hold will suggest the S&P and other like markets will continue to outperform Gold. Breaking above that 8 month downtrendline that is in place will suggest a successful test of support and that Gold will outperform the S&P and other like markets. Ratio charts are good for indicating changes of one market to another. Keep in mind this is a Weekly chart and a Friday close is what's important each week far more than Daily moves.

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