Market: $ES_F and $CL_F
Chart Analysis: Today we examine the relationship between Gold Futures ($GC_F) and the U.S. Emini S&P Futures ($ES_F). Our NinjaTrader Multi Series charting powered by Kinetick’s unfiltered tick data allows us to compare the price action of these 2 markets in a single chart window. The recent rallies of these two markets is an interesting study of leading and following markets. Not since June has the price of gold caught up to the rally of the S&P, closing the wide gap between these markets during the month of August. Through 2012, the Emini S&P has been the leader of this two horse race, but investing in Gold over the last month could have seen higher potential profit as Gold Futures have spiked more quickly than the steady move of the S&P. Adding and customizing the Fibonacci Retracement drawing tool clearly shows the 150% move has occurred where price is currently taking a breather and there is a possibility of reaching the 200% finish line. We continue to analyze momentum in these markets by applying a MACD indicator study which is one of over 100 technical analysis studies pre-built within NinjaTrader’s free version. As we move closer to the U.S. Presidential election, will investors continue to buy into the U.S. market’s rally or decide Gold is a safer place to invest? We will re-evaluate these 2 markets again in the coming weeks to determine which horse pulls ahead.
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