The chart below represents the relationship of the Dow Jones to an ounce of gold. Things to note...very long uptrend broken (white line), very long support/resistance line broken (light blue), well below average since 1979 lows (green line), we are at a 30% retracement from most recent low (cyan text) which compares well with all previous major retracements in this down-cycle... a fat juicy extrapolated target seems to be waiting for the DOW below 5000 and Gold over $1000?
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEguPuMYchQzT3opFxMBJmErDuVTEHGdaQPTcrU5qyBitDjNxZKT9QIeWn7MAqk7T_gT0wC_lePwQEOZv5FiA6cx98TNkOF7zGeXhhjfd71l2iHLrD6JYB8U56spPTOcxqcgk2auUWdRH6xx/s400/sg200904152086.gif)
The same from 30,000 feet: we are still way too high for the average downturn....
Buy Gold, sell not-Gold?
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjg6n8UB906E34lUb4pctUfkV45da-bHszAsgL7pUCziHfUsHVMOEbIUX92y1L6AV-W4bkqR2kZaalVBcxtIC2ZlwN_ybjt38KoO67cSnKkn93ppCuH12tdMstTz0TSJnS7VMy-K9AYb6iW/s400/sg200904152744.gif)
hat tip Tim
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