As we have followed over the past year, the secular cycle dynamic between the RUT:SPX and the US dollar index continues to play out along similar lines. Like the previous turn in the 1990's, the USDX has led the pivot as the "primary tide" - with the SPX taking the pole and outperforming the RUT as the "secondary tide".
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Although there exists a lag in tides like the previous turn, it is largely to a much lesser extent as expressed below in the 50 week EMAs.
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As expected, volatility has increased in the precious metals miners, as they continue to work towards another Blue-Light Special. The GDX:GLD ratio made a new closing low today - with considerable potential momentum remaining on the downside.
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This perspective is buttressed by our Nikkei/Silver comparative, which has presciently guided us in patiently walking the stairs lower in silver for quite some time.
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* All stock chart data originally sourced and courtesy of www.stockcharts.com
* Subsequent overlays and renderings completed by Market Anthropology