Since the summer lows, the Gold/Dollar ratio has traded sideways inside of the blue box. Strength in Gold of late has it breaking above the top of this trading range in the chart below at (2).
Whether the Dow is down nearly 20% from the highs of a few months ago or it experiences a 1,000 point rally, what should one do to give proper perspective to these big price moves we’ve experienced of late?
This chart looks at the Banking Index (BKX) over the past 25-years. It 2007 the index broke 11-year rising support and its 1-year moving average at (1). Once the index broke long-term support and the moving average, the banking crisis was underway, as the index declined over 80% in less than 2-years.
The Wilshire 5000 is currently making new 2018 lows (below the February lows) while breaking down through important trend line support off the 2009 lows. See (3) in chart below.
