A couples Odds & Ends related to U.S. equities and gold's rally.

Odds & Ends

• Monday’s (10/6) action marked a seventh consecutive positive day for both the S&P 500 Index (SPX) and Russell 2000 Index (RUT). RUT moved above 2500 intraday Monday for its third consecutive buy signal and a new all-time chart high, while SPX maintained its current chart position at 6750 after rallying on Friday (10/3). For SPX, this is the longest streak of positive days for the index since May of this year when large caps rallied from late April through May 2^nd. Meanwhile, for RUT, this seven-day streak matches its longest run of positive days since September 2024. Both indices had multiple seven-day periods of positive action during 2024 – four for SPX, two for RUT – but RUT hasn’t witnessed a run of positive action extend past seven since February 2019. The S&P 500 hasn’t seen a streak of positive days reach double-digits since September 1995, while the Russell 2000 hasn’t seen a streak run past 10+ since November 2016 (15 days). The Russell 2000’s longest run of positive days came in March 1988 when the Index rallied for 21 days, while the longest streak of positive days for SPX is 14 days from April 1971.

• Gold continues its impressive run with Monday’s (10/6) action pushing the precious metal above 3950 and intraday action Tuesday seeing price rally above 4,000 for the first time. Monday’s trading brought about a seventh consecutive buy signal for Gold on its continuous chart (GC/), marking the second time since daily data since 1975 with the only other time being March 2008. This streak of action has put the Weekly OBOS Reading north of 100% - overbought territory – for going on five consecutive weeks. Investors have only seen this type of extension in an overbought position persist one other time in May 1993. Forward returns for both gold and U.S. equities following that occurrence showed consolidation to a slight pullback in the short-term. Meanwhile, intermediate to long-term returns for positive for U.S. equities and slightly negative for gold. While investors await further reads on inflation along with the Fed’s potential response, a close eye will also be on gold.