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Dow Theory Update For June 28: Precious Metals Rebound Or A Dead Cat Bounce?

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

Primary and secondary trends unchanged.

Let's get started with our Dow Theory commentary for today.

Stocks

The SPY, Industrials, and Transports closed down.

The primary trend and secondary trend is bearish for the reasons explained here, and further explained here.

Today's volume was much higher than yesterday's, which is bearish as volume expanded with declining prices. The overall pattern of volume is bearish for the reasons explained here and, more recently, here.

Here you have an updated chart that says it all:

 

 

Volume expanded today as prices declined: bearish volume action continues

Gold and Silver

SLV and GLD closed up strongly. However, one day of strength is not enough to change any trend. Thus, the primary trend is bearish, as explained here and reconfirmed bearish here; the secondary trend remains bearish too.

GDX and SIL, the gold and silver miners ETFs closed strongly up too. The primary trend is bearish, as explained here and reconfirmed bearish here; the secondary trend remains bearish too.

Eventually, one of these primary bear market re-confirmations will be proven false. In the meantime, it is better not to fight the trend, and wait for a primary bull market signal in order to make a commitment on the long side.

Have a nice weekend.

The Dow Theorist

Stocks: SPY, DIA, IYT, GLD, SLV, GDX, SIL