GDX and SIL flirting with a primary bear market signal
The SPY, Industrials and Transports closed down.
The primary trend was reconfirmed as bullish on October 17th, for the reasons given here.
Today's volume was much stronger than yesterday's. Actually, we have witnessed today the highest volume since September 20 (a bearish day which heralded a short-lived secondary reaction). This is bearish, as lower prices were joined by stronger volume. I consider volume to be bearish for the reasons given here and here. Furthermore, the trend line of volume of the last few days is ominously bearish, as volume has steadily contracted as prices advanced and has expanded as prices declined.
Gold and Silver
SLV and GLD closed down. For the reasons I explained here, and more recently 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.
Here, I explained that GLD and SLV set up for a primary bull market signal. However, a setup is not the same as the "real thing," namely the primary bull market; thus, many "setups" do not materialize and until the secondary reaction closing highs are jointly broken up, no primary bull market will be signaled.
SIL and GDX closed down. By closing down SIL and GDX are flirting with a primary bear market signal, as was explained here.
The secondary trend is bearish, which is tantamount to saying that there is an ongoing secondary reaction against the primary bullish trend, for the reasons given here.
The Dow Theorist