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Dow Theory Update For July 17: Precious Metals Weak

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

Primary trend of stocks continues bearish

Let's begin with our Dow Theory commentary for today.

Stocks

The SPY, Transports, and Industrials closed up. As explained here, the Transports have failed to confirm for 5 consecutive days the higher closing highs made by the Industrials and the SPY . Therefore, no primary bull market has been signaled yet.

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

The secondary trend is bullish, as has been explained here.

Today's volume was higher than yesterday's, which is bullish, as higher prices were supported by expanding volume. However, the overall pattern of volume remains bearish as:

1. There are more red arrows (bearish volume days) than blue arrows (bullish volume days), as you can see from the chart below.

2. Volume clearly recedes when prices stage a rally lasting some days (declining trend lines).

On the plus side, we have to note that five trading days ago, we had a bullish pivot (highlighted with an ellipse), as was explained here.

Here you have an updated chart:

 

 

Volume remains bearish

Gold and Silver

SLV and GLD closed down. The primary trend is bearish, as explained here and reconfirmed bearish here. Furthermore, the secondary trend remains bearish too.

GDX and SIL, the gold and silver miners ETFs closed down. The primary trend is bearish, as explained here and reconfirmed bearish here.

The secondary trend for GDX and SIL is bullish, as explained here.

Sincerely,

The Dow Theorist

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