This video highlights a fairly consistent correlation between gold & the stock market, with major tops in gold (via GLD) preceding major tops in the market (via SPY), thereby providing an early indicator of potential corrections in the stock market. Most recently, the sharp divergence between GLD & SPY serves as a caution sign that a mean reversion (i.e.- gold up or stocks down) is likely to occur soon. (This was the video that I started working on earlier today when the price alert for the Pandora trade setup was triggered).
Using Gold as an Indicator for Stock Market Corrections (video)
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