We noted that the bear flag was likely to produce either a test of the March low or the worst implications of the weekly chart, which begin at 250 and extend to 100.
Today the HUI is testing the March low (337.29) with a marginal new low (335.05), which we noted would be okay in the context of a test of the lows.
Depending on what the index does after the opening frenzy clears, it is now a candidate for a bottom retest. It is also a candidate to lose support and load 62% bull market Fib at 260 (visual support at 250).
I am going to watch established items like AUY and AG for possible purchase. This would of course be subject to a bottom holding here. 335 is about my limit.
Gold and silver have been hammered down into their thick support zones from last summer’s lows as expected. Key levels are 1526 on gold and 26 on silver.
I’ll not micro manage you here. The parameters are clear.
I am also watching the broad market for bear opportunities. The market’s leadership has been dropping off with semiconductors, tech, transports, banks, etc. weakening relative to the headline Dow and SPX. This is still developing, but the market is at high risk now by my eye.