We have reviewed the weekly bear flags, especially apparent on the mining indexes (HUI, GDM, etc.). If the precious metals stand a chance to rally, silver likely needs to be a leader. This may not be the case later, after the next down phase begins on the broad markets. But in the current atmosphere, where gold stocks are still seen as part of the ‘inflation trade’, it is probably so.
So I wanted to point out that silver has not broken down and on a daily chart it actually sports what could be considered a bull flag off of the initial up thrust, lame though it has been. By no means have I cared for the lack of conviction for the precious metals lately, but the PM complex is still alive in its quest for HUI to fill a gap at 300 at least and gold and silver to test their bear market breakdown resistance levels (1524 and 26.10 respectively).
HUI could fill its gap at 300 and still be considered in the weekly bear flag. So beyond a rally pop, I still lean toward a continued precious metals correction from whatever point the big market finally decides for correct. Again, for that we will follow the leaders per the targets noted in NFTRH 238.