Entering text into the input field will update the search result below

Dow Theory Update For May 14: Stocks Make Higher Highs

May 14, 2013 6:25 PM ETSPY, DIA, IYT, GLD, SLV, GDX, SIL
Manuel Blay profile picture
Manuel Blay's Blog
115 Followers
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Gold and silver at crossroads

Stocks

The SPY, Industrials and Transports made higher highs (see chart below). Such higher highs re-confirm the primary bull market in stocks. The primary and secondary trend remains bullish.

Be it QE, be it inflation ahead, be it who knows what...higher highs confirm the primary bull market

Today's volume was higher than yesterday's, which makes it a bullish volume day. The overall pattern of volume is neutral.

Gold and Silver

GLD and SLV closed down. Accordingly, the pullback whose study was made in this Dow Theory blog here continues. This further clarifies the existence of the setup for either a primary bull market or a re-confirmation of the primary bear market. Gold and silver are at crossroads now. Either they break above the secondary reaction highs thereby flashing a primary bull market signal, or violate the 04/15/2013 lows, thereby re-confirming the primary bear market. It is a really interesting technical formation.

In the meantime, the primary trend is bearish and the secondary trend is bullish.

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

Sincerely,

The Dow Theorist

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You