Gold and silver back off
Let's get started with our Dow Theory commentary for today on this blog.
The SPY, Transports, and Industrials closed down. The Transports made a lower low unconfirmed by the SPY and Industrials. The longer non-confirmation persists, the higher the odds for the end of the secondary reaction.
The secondary is bearish, which implies an ongoing secondary reaction against the primary bullish trend, as explained here. The chart below displays the current state of the secondary reaction (red rectangles), which has been with us since early August.
Today's volume was higher than yesterday's. Since stocks closed down, expanding volume has a bearish connotation, as lower prices were met by volume. I'd label current volume readings as neutral.
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.
The Dow Theorist