"in a hundred years of data....only one selloff to a monthly RSI worse than now.......lows were all followed by outstanding rallies - virtually immediate to the reading." ...... more below.....
Full article here
In a hundred years of data, starting with Homestake and changing to the XAU in 1983 there was only one selloff to a monthly RSI worse than now. That was a reading of 21 in 1924. Now its plunged to 23.9 and the "terrible" lows were few in number. 24.8 was clocked in 1942, 27 in 1948 and 25.3 in 2008. That's the list and all were followed by outstanding rallies - virtually immediate to the reading.
Action in the gold/silver ratio has provided an outstanding guide to important tops and bottoms. This worked very well a year ago in April and silver's action now is accomplishing the opposite extreme.
The S&P is nowhere near such a severely oversold condition.
Market history is poised for the start of the next stage of a lengthy bull market for the gold sector and within a global recession - an even more compelling condemnation of policymaking.
Regular technical analysis by Ross Clark of Hoye's Institutional Advisors at 321 Gold
Bob Hoye interview last week
Howestreet.com Weekly Interviews - Bob & Phil
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