Leveraged silver to silver (spot) ratio which broke to new lows in 2014 to the chagrin of the bulls has been trending downs since 2011 (chart 1). Since leverage leads price, a market relationship understood by most traders/investors, this downtrend, a graphic depiction of outflows and/or risk-aversion within silver, commodities, and the precious metals sector, provides undeniable proof that supply (the bears) control the trend. Although this message is dynamic, it remains 'the message of the market' until reversed. This message will be reversed when an X stack or upside rally count breaks above the -45 degree trendline from the 2008 high (chart 1).
The message of the market, however, cannot be defined by intermarket relationship.The message of the market can only be derived by studying the movement and concentration of leverage and flow of money between markets and countries.
In other words, is the bearish message above confirmed by leverage and other intermarket relationships?