Next target opening down below is the 50% Fib = $106.47, unless price is able to rally, but historical resistance is coming down ever closer, reducing likelihood of any significant rally, IMHO:
$SBIX - S&P Bank Index - 5-Yr., WEEKLY Chart:
- Dalcindo
--------------------------------- Message in reply to: The US Banking System is heading for a big fall (Gold_Lunatic) Aug 24, 21:43
The trends of T-Bond Yields and the US$ have heretofore been downward on-balance during the past decade. And IMO there is nothing on the horizon to alter this. In fact the T-Bond Yield looks to retest its Dec2008 low of 25. Consequently, the US$ Index should fall approx 30% to about 58 (if it maintains the same direct correlation with T-Bond Yields).
How might a 58 US$ Index translate to the gold price?
The Gold vs US$ chart below demonstrates that gold rises on-balance +13% for every -1% decline in the US$ Index. Therefore, this implies the gold price could theoretically rise +390%. This would suggest a gold price close to $5,000/oz.
Barron's gold Stocks Index soared over 900% during Carter's 4-year Presidency (notice chart is in Log scale) - Click chart when you see it to make larger.