Tuesday, July 17, 2012

Prospecting

With consideration of another round of quantitative easing front and center on many traders minds, could the gold miners be a leading indicator for the equity markets?
 The SPX and its respective RSI have been shifted on the chart below to fit the pattern of the miners. 
With the Chairman's testimony now in the rear view mirror and with very little substance shed towards the prospects of additional QE, perhaps the miners are telling you the path of least resistance going forward into the next Fed checkpoint - is lower. 


Food for thought.