It’s broken now. I was out working in our yard all day long. Never once looked in, until now, at 6:45 pm EST. When I saw the price of gold and silver, and then the prices of our miners… I said, “That’s it! That’s all she wrote“. I know support has to be broken, and technical damage to all the prices has to be quite severe. Nothing more to say, but to examine the charts. Volume was, no doubt, staggering. So, let’s see.
We start with, and maybe it will be all of them, those that took a dump on high volume, and also broke the long base of support that had been being constructed: GLD, GDX, SGDJ, ABX, SGDM, PAAS, SILJ, PVG, FSM, SSRI, CDE, SLW,
Well, it’s NOT all of them, I find these that declined; volume was only average, and their support is still in place, as with: HL.
Then, I’ve got these that declined on big volume, but did not break support, such as with: SLV, RGLD, AG.
It’s bad… average volume was up 121% over the 50-day average, and greater than the volume of Thursday.
It’s necessary to take protective action, and sell either immediately, or into any bounce that takes place, as the case for the bull having been gored is pretty strong. And, even if it isn’t, the technical damage done by a day like today typically takes considerable time to heal, as a great deal of harm has been done, and nearly all who were holding out the bullish case have been slapped, and will need time to see all new evidences for it to still be in existence.
I am now officially a skeptic, and will require all new reasons to believe.
Here’s to your accumulation of real wealth!
Harold F Crowell