This is good news, my Timing Model volatility indicator is actually dropping. It peaked at 2.9 on 3/17 and has steadily dropped to 1.79 as of yesterday’s close. This confirms my cautious belief that the market has bottomed but we’re not out of the woods yet. Everything hinges on what Gold prices do in the next few weeks.

Right now the market is driven by what the Fed is doing and will do. The best indicator to watch on how people react to the Fed’s policies and decisions is Gold’s price. Gold prices and the S&P500 are almost an inverse relationship and the higher the price of Gold, the weaker the S&P500 is.