Secondary trend for gold and silver miners ETFs continues bullish
Let's see what the Dow Theory has in store for us today.
The SPY, Industrials, and Transports closed up. The primary trend is bullish, and the secondary trend is bearish (ongoing secondary reaction).
In my last two posts, I insisted that the market should stage a rally off the lows or else….The "else" is a primary bear market signal whose details were given here.
I also wrote yesterday that today could be the last chance to show technical strength, and thereby avoid the threatening primary bear market signal. Well, today the stock market displayed some strength. While it is still perfectly possible that the 06/05/2013 secondary reaction lows will be violated, today's action has given stocks a breather.
Today's volume was higher than yesterday's, which makes it a bullish volume day. If I were to be guided exclusively by volume, I'd dare to say that the action of the last three days gives some hope to the bullish case because:
1. The last two days were bullish volume days.
2. The last pivot low three days ago was bullish as volume contracted (more explanations here).
Here you have an updated chart displaying the volume patterns.
Gold and Silver
GLD closed down, and SLV closed up. The primary and secondary trend remains bearish.
GDX and SIL, the gold and silver miners ETFs, closed up. The primary trend is bearish, and the secondary trend is bullish for the reasons given here.
The Dow Theorist