A snapshot of current technicals for key markets…
GLD became very bearish with the breakdown from 124. A rise above 123 is needed to even begin to repair this chart.
SLV is testing support more times than is usually healthy, as previously noted. In combination with the lower high in July, this is a negative.
SLV-GLD still looks constructive to bottom and at least bounce. That would be a positive for the precious metals sector.
GDX dropped from its bearish looking pattern with a thud right to anticipated support, which is a measurement of the pattern. NFTRH 307 however, introduced an argument for support on HUI at around 210-212 based on the weekly chart. So it is added to GDX below. But GDX can bounce from current levels but 25.50 to 26 holds significant resistance.
GDXJ is similar to GDX.
SIL has dropped through the pattern’s measured target (12.50), and sliced through support like it was not there. Barring a quick reversal, the next support is noted.
GLD-SPY has continued to break down. This marker forced increased caution on the precious metals when it made a lower low. Still very bearish.
DBC continues to reflect the general commodity drubbing. With the CCI index at 506 we note that critical long-term support is 500. MACD is trying to diverge positively.
DBA continues in its bearish downtrend channel with some positive divergence by MACD.
DBB looks like it may still want the NFTRH+ target of 18.50 and then some; as long as it stays above support at 18.
USO Continues to be a mess below 35, after a failed bounce.
UNG is still no good below 22.
URA is also no good. Okay, there’s a trend line. That’s something.
TLT is in opposition to commodities in that it likes the lack of inflationary signals and remains in a firm uptrend channel.
SPY is bullish above support.
QQQ is bullish above support.
SMH is bullish above support.
EZU is bearish while below resistance.
FXI is bullish above support.
EEM is bullish above support.
FXE sliced through our target and is deeply over sold.
UUP sliced through our target and is wildly over bought.
Bottom Line
Precious Metals: Bearish until they prove they can even find support, let alone bounce or rally. The Silver-Gold ratio is a sneaky bullish divergence, just as it was during the darkest moments of the last down cycle. We had HUI 220 to 225 on radar for so long for a reason. That reason would be that it was a measured target and a point of support amidst bullish hype that was unhealthy for the sector. So it will be interesting to see if the sector can put something on here, as opposed to the 210-ish area.
Commodities: Bearish (base metals excepted) amidst the lack of inflation…
Stock Markets: …even as global policy makers continue to inflate and support stock markets, which are generally bullish (with Europe still in question).
Currencies: The Euro is hated and deeply over sold. The USD is loved and severely over bought. That should eventually bring about a reversal bounce and drop, respectively. But these things can take time as trends persist.
