S&P Setting Up to Retrace in Line with Gold & EUR/USD?
After two hours of trading, let's notice the location of each market -- spot gold, Emini S&P 500, and EUR/USD-- since yesterday's comments by the ECB's Draghi and in relation to Draghi's initial, very bullish comments from July 26.
Spot Gold has reversed from $30 above to $12 below July 26. The e-SPU has reversed from 60 points above to 30 points above July 26, and EUR/USD has reversed from 2 big figures (200 basis points) above to 1 big fig below July 26.
Obviously, the glaring divergence is in the e-SPU, which must or could decline to the 1326 area to retrace the entire Draghi advance, which would put that index more in line with Gold and EUR/USD.