SIL and GDX remain within striking distance of the secondary reaction highs.
The SPY, Industrials and Transports closed up.
So the current primary bull market signal has survived three secondary reactions.
a) No setup for a primary bear market signal has been completed.
b) We cannot affirm that the secondary reaction has put its final lows yet.
Gold and Silver
For the primary trend to turn bullish, SLV and GLD should jointly break above the secondary (bullish) reaction highs. As a reminder, the secondary reaction closing highs were made on August 27th, 2013. From such highs the market declined without jointly violating the June 27th, 2013 primary bear market lows.
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.
On a statistical basis the primary bear market for GLD and SLV is getting old. More than one year since the bear market signal was flashed has elapsed. However, I am extremely skeptical as to the predictive power of statistics. I prefer price action to guide me, and the Dow Theory tells me that the primary trend remains bearish until reversed. However, the secondary bullish reaction against such old primary bear market is also getting quite old. Tie.
Furthermore, the June 27, 2013 lows remain untouched. The longer this situation lasts, the higher the odds that something might be changing. But I wait for the verdict of price action.
As to the gold and silver miners ETFs, SIL and GDX closed down.
On July 11th, I alerted the followers of this Dow Theory blog that SIL and GDX were close to signaling a primary bull market. Go to the relevant post and chart here. On July 22nd, I explained that the signal did not materialize yet, as you can read here. On August 12, I did the same, as you can read here.
Nonetheless, SIL and GDX remain within striking distance of the relevant closing highs to be broken up. So we have to keep our eyes glued on the SIL/GDX chart.
Please mind that a setup is not the real thing. So the primary trend has not turned bullish yet (or maybe "never").
The secondary trend is bullish, as explained here. In spite of short term bullish accomplishments, SIL and GDX are not in a primary bull market.
The Dow Theorist