Timing Model Indicator Is Dropping!

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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.

  • Digital Dude

    That is an interesting prospective on the relationship between the S&P500 and Gold.

    My point of view is that Gold and the S&P500 has a more direct relationship.

    When the fed lowers the rates both gold and the S&P seem to go up.

    From a technical POV it looks like a short term market bottom is in place ;-)

    Cordially,

    -Digital Dude-

  • http://www.neuralmarkettrends.com Tom

    DD: Gold is a funny thing. When Fed rates are high, Gold and the S&P500 have an inverse affect on each other. Once rates are low then you have more of “decoupling” of that.