Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Dow Theory Update For August 21: Secondary Correction For Stocks Continues Unabated

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

Precious metals consolidating

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

Stocks

The SPY, Industrials, and Transports 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 higher than Tuesday's. Since stocks closed down, expanding volume has a bearish connotation, as lower 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.

Gold and Silver

SLV, and GLD closed down. For the reasons I explained here, I feel the primary trend remains bearish. Here I analyzed the primary bear market signal given on December 20, 2012. 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 DOWN, 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.

Sincerely,

The Dow Theorist

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