We will know soon.
A couple of days ago, the SPY made a higher closing high whereas the Industrials and the Transports failed to confirm. The longer such non confirmation persists the higher the odds for a secondary reaction to develop. Today's dismal action makes it more difficult for the Transports or the Industrials to confirm the SPY's higher high soon, which at the same time, increases the odds for a secondary reaction.
In any instance, we are not in the business of forecasting secondary reactions, but merely we are intent on determining the primary trend. So we will wait and see.
The Industrials, Transports and SPY closed down.
Today's volume was higher than yesterday's. This is bearish, as lower prices were confirmed by stronger volume. I'd label the overall pattern of volume as bearish.
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. However, such set up will be nullified if GLD and SLV jointly violate the last recorded primary bear market lows, as I explained here.
The Dow Theorist