Small Caps queue up behind the Copper/Gold Ratio

The Copper/Gold Ratio also correlates well with the S&P SmallCap 600 Index.

Currently, the small caps are trading within and through a range. While the setup for higher prices looks good (for traders), queueing off the Copper/Gold Ratio’s path may be helpful.

The more notable longer term buy signal in the small caps occurred in June 2022.

The S&P Small Cap 600 will need to trade 7% from Friday’s close to make a new ‘higher high’.

Bargain hunters awaiting a repeat or re-visit of that moment, will be tested with any extension of this rally.

It’s a rally to rent, rather than own.

November 21, 2022

by Rob Zdravevski

rob@karriasset.com.au