Monday, April 29, 2013

Gold (and 10yr UST) suggest S&P500 initial break target around 1380

Deflation is alive…

In my earlier post today I show a UST 10 year divergence that is reaching untenability with the S&P500…it is currently suggesting that the S&P500 belongs at 1380. Using the recent Gold move to illustrate how that 1380 could be achieved and also a secondary endorsement of the Treasury hypothosis…Gold also points to 1380 for the S&P though that will, along with UST, likely be adjusted lower as Gold breaks its recent lows and UST Yields break their lows. 
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