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https://i-invdn-com.investing.com/news/fa8a2f803ea2ddf92359d55091dcde0a_M.jpg
(Source: TC2000.com)
As the chart above shows, silver has been in a steep downtrend over the past year vs. the S&P-500 but recently found some support at a major support level. This is the same level where this ratio bottomed in late 2018. Since attempting to hammer out a bottom, the Silver/S&P-500 ratio has climbed back above its short-term moving average (red line), a positive sign suggesting a potential change in momentum. If we look back over the past three decades, silver’s best performance has come when it’s only been leading the price of gold but also the S&P-500, and this recent shift in momentum is a positive development thus far. The key to confirming this, though, is for the Silver/S&P-500 ratio to move above its long-term trend line as well, which would require a dip in the S&P-500/Silver ratio to 170 or lower. This will be a level to monitor as we head into the back half of Q4.
