Morning Corner 7.29.11

SPX/Gold Ratio (monthly info)
-no change (below mid)
trend=down
low= 0.7645
rev= 1.0672; mid= 0.9159


Here's the truth about QE1, QE2, unexplainable rallies, etc. They're all BS. In terms of gold the SPX is looking to make new lows. It's below all SMA's. It's making a weekly 3LB reversal down (1 more day).



XLP/SPY Ratio (weekly info)
-no change (below mid)
trend=no
direction=up (1 bar)
low= 0.2350
rev= 0.2450; mid= 0.2400

It appears consumers are heading for the hills as discretionary is falling faster than the SPY. It's still below the weekly 3LB mid and fighting to stay above the monthly 3LB mid. It's below the SMA(21) and support is the SMA(233). That's a pretty good drop if it's get there.