SPX Looks Ready To Depart From Gold, After A Long Unusual Correlation

SPX Looks Ready To Depart From Gold, After A Long Unusual Correlation

S&P 500 Futures nose dived on Friday and fell from record highs after a heavy sell off in U.S. equity markets due to growing fear of coronavirus outbreak, which might increase this spread globally. I find that this sell-off has pushed the S&P 500 futures below S&P 500 Index; confirming the continuation of a downward trend.

On the other hand, SPX looks ready to depart from the unusual correlation with Gold Futures, which may result in upward move in steady gold; and the S&P 500 futures may see extended exhaustion during the upcoming weeks.

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S&P 500 Futures – Outlook for the week of January 27th, 2020

SPX Looks Ready To Depart From Gold, After A Long Unusual Correlation

Disclaimer: This analysis is purely based on the technical observations. I do not have any position in Natural Gas. One can create position in Natural Gas at his/her own risk.