SPX priced in spot gold…on long term support
SPX priced in Spot Gold
Above is a chart of SPX in gold. In late 2008, (the period at the beginning of this chart), the nominal level of SPX was around 1375. It is now near 1325 (15-April 2011). So, one might conclude that the damage has been repaired. However, when priced in gold, SPX is still about 33% lower than it was in late 2008. However, we do appear to be on long term support in the above chart, which suggests selling gold vs buying SPX. (This is NOT a recommendation).
