
The Softest of Powers

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As we all await to see how the actual market (not weekend guesses) responds to the Iran situation, let’s do something we haven’t done in a long while and check out some key ratio charts.
My long-held thesis that precious metals were going to massacre equities is in full swing, with the NASDAQ collapsing when denominated by the price of silver.

Over the past week, the balance of power tilted ever-so-slightly toward the bears. Broadly speaking, the market has been range-bound for nearly half a year, and the levels of support and resistance have been clearly defined. The longer this takes, the more explosive the breakout or breakdown will be.
The NASDAQ Composite shows this range quite plainly in the tinted zone.
