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Dow Theory Update For August 20: No Changes In Trends

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

Gold and silver miners ETFs consolidate gains.

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


The SPY, and Transports closed up. The Industrials closed down.

The primary trend is bullish, as explained here, and more in-depth here.

The secondary is bearish, which implies an ongoing secondary reaction against the primary bullish trend, as explained here.

Today's volume was lower than yesterday's. Since stocks closed mostly up, contracting volume has a bearish connotation, as higher prices were not confirmed by volume. For the reasons I gave here, I'd say that volume is bullish. Furthermore, the last breakup of 08/01 was a bullish pivot, as was explained here.

Here you have an updated chart:



In spite of the current pullback, the volume tends to be bullish

Gold and Silver

SLV closed down, and GLD closed up. For the reasons I explained here, I feel the primary trend remains bearish. Here I analyzed the primary bear market signal. The primary trend was reconfirmed bearish, as explained here. The secondary trend is bullish (secondary reaction against the primary bearish trend), as explained here.

GDX and SIL closed up, and, unlike GLD and SLV, are unambiguously in a primary bull market under the Dow Theory, as explained here and here. The secondary trend is bullish as well.


The Dow Theorist