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Dow Theory Update For April 23: Stocks Closed Up But Fail To Better Recent Highs

|Includes:DIA, GDX, GLD, IYT, SIL, SLV, SPDR S&P 500 Trust ETF (SPY)

Precious metals fail to reverse bearish trends

Russell warns of excessive bullishness among investment advisors

In his last two Dow Theory Letters, Richard Russell has warned that bullish advisers clearly outnumber bearish advisers.

Normally, such excessive bullishness tends to beget at the very least a secondary reaction.

However, as readers of this Dow Theory blog are well aware, market action will have the last word. If a secondary reaction is coming we will soon know. In the meantime, we study diligently the markets.


The SPY, Industrials and Transports closed up. However, in spite of recent price advances, no index has been able to better the last recorded highs as shown on the chart below (the horizontal red line shows the high-water mark). I am wondering whether the secondary reaction has turned bearish. I need further study which I hope to complete tomorrow in order to pronounce my verdict. The primary trend is bullish.



Markets are failing to better the last recorded highs (horizontal red lines)

Today's volume was higher than yesterday's, which is bullish. The overall pattern of volume remains bearish.

Gold and silver

Is GLD being bled to death? So it seems as inventory losses is gaining momentum. Here you can find the latest data:

GLD and SLV closed down. The primary and secondary trend remains bearish.

SIL and GDX, the gold and silver miners ETF, closed down. The primary and secondary trend remains bearish.


The Dow Theorist