13 May 2010

Gold and Oil Weekly Charts: SP 500 Bubble Deflated by Gold

Gold is moving within a fairly well defined uptrending channel. It is at a minor resistance point, and has more room to the upside.

Oil is approching an oversold condition and the bottom of its trend channel.

The recent 'recovery' in the SP 500 deflated by gold is instructive. This should help those who see no recovery in the real economy, but were confused by the amazing spike in the US equity market. It was a monetary phenomenon.