Wednesday, October 6, 2010

What September Rally? S&P 500 Price in Gold In Downtrend

I mentioned this a month ago, early September. This market does not seem bullish to me.

S&P 500 Priced in Gold

The S&P 500 may be trading at its highest levels in close to five months, but relative to the price of gold it looks like anything but a rally. Back in October 2009, the price of the S&P 500 was actually higher than the price of gold. Over the last year, though, gold has pulled ahead while stocks have gone nowhere. Today, the S&P 500 is trading at 1,157 while the price of gold is trading at 1,337 per ounce, for a ratio of 0.86.

I think I should add a 'price in gold chart' tool to EzBacktest...

Cheers!

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