Gold and silver consolidating
Let's get started with our Dow Theory commentary for today.
The Transports and the Industrials closed down. The SPY closed up. Stocks seem to be taking a breather.
Today's volume was higher than yesterday's, which is bearish as lower prices attracted stronger volume. Yesterday's volume was bearish too. While volume considerations are much more subjective than price observations, I'd label the overall pattern of volume as bearish. Here you have an updated chart.
|(click to enlarge)Click to enlarge|
|Red arrows overwhelm blue arrows: The overall pattern of volume looks bearish|
Gold and Silver
SLV and GLD closed up. The primary trend is bearish, as explained here and reconfirmed bearish here. The secondary trend is bullish (secondary reaction against the primary bearish trend), as explained here.
GDX and SIL, the gold and silver miners ETFs closed up.
The secondary trend for GDX and SIL is bullish, as explained here.
The Dow Theorist