[isatrader]

It's been a while since I last looked at the Gold versus the S&P 500 relative strength chart ($SPX:$GOLD) and the Continuous Commodity Index versus the S&P 500 relative strength chart ($SPX:$CCI) when they both broke out into Stage 2A early in the year.

So far this month has started to see a potential swing high on both charts with gold and commodities both outperforming the S&P 500 during August so far. However, one month doesn't make a swing high, but with equities starting to have a pullback it could well be a short term high with commodities and gold coming back into favour. But the overall trend for both is still in early Stage 2A and would take a very large shift to change the longer term trend that favours stocks.