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Dow Theory Update For August 22: Stocks And Precious Metals Closed Up

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

Secondary trend for stocks remains bearish

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


The SPY, Industrials, and Transports closed up.

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 up, contracting volume has a bearish connotation, as higher prices were not confirmed by volume. We have had 3 consecutive volume bearish days in a row, which, prompts me to say that volume has ceased to be bullish and is now neutral.

Gold and Silver

SLV, 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 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 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